PGNiG and Gazprom cause EuRoPol boardroom woes

EuRoPol Gaz, a joint venture of Polish Oil and Gas (PGNiG) and Gazprom responsible for the Polish section of the Jamal pipeline, failed again to complete its general shareholder meeting. The meeting, originally begun a month ago, has been repeatedly suspended; neither has a new president been chosen, nor its 2005 balance sheet authorized. Actually the latter was a direct consequence of the former. According to unofficial information, Gazprom wanted to take advantage of the opportunity and limit the power of the president. Since the shareholders failed to come to terms, the balance sheet was not authorised. Otherwise, the current (from PGNiG) president's term of office would have expired, leaving EuRoPol Gaz without a new president, thus giving Gazprom an advantage of one member of board. EuRoPol Gaz had USD 1.18 billion debts at the end of 2005, while 2005 revenues grew by 10% to USD 458 million and net profit fell to USD 121.9 million (compared to USD 272.6 million in 2004) (Gazeta Wyborcza, July 29-30, p.31) J.L.