Pfizer Initiates Legal Action Against Poland Over Unpaid Vaccine Bill Amidst Ukraine War
Pfizer, a pharmaceutical company, has initiated a legal confrontation with Poland over an unresolved vaccine bill amidst the ongoing conflict in Ukraine. The lawsuit, filed in Brussels, seeks a significant compensation of PLN 6 billion (EUR 1.37 billion) from Warsaw, alleging a breach of a critical COVID-19 vaccine contract involving an order for 60 million doses.
The legal action follows protracted negotiations between Pfizer and the Polish government, which failed to yield a resolution. Pfizer strategically timed the lawsuit, waiting for a moment when the Ukraine conflict would fade from global headlines.
Warsaw, having initially ordered the vaccines but unable to make the required payment, invoked “force majeure” as the primary reason for its failure to fulfil the agreement. In a communication to European Commission President Ursula von der Leyen, Polish PM Mateusz Morawiecki ascribed the decision to the conflict in Ukraine. However, Pfizer contested this explanation throughout year-long negotiations, leading to the current legal standoff.
The Polish government, burdened by the financial impact of the Ukraine conflict and handling refugee costs, decided to terminate the vaccine contract with Pfizer. Despite subsequent attempts at negotiation, no resolution was reached, prompting the commencement of legal proceedings.
The repercussions of this legal dispute now rest on the shoulders of the newly formed government, expected to be led by Donald Tusk. Notably, by the end of 2023, over 5 billion zlotys in the Covid Fund will no longer be available, having been reallocated for other purposes.
Legal experts stress that for a robust defence, Poland must convincingly establish the causal link between Russia’s attack on Ukraine and its inability to fulfil the vaccine contract. The first hearing for this high-stakes legal battle is scheduled for December 6, promising an intriguing development in international litigation.
Niedzielski deemed the initiative “utterly pointless,” contending that a significant portion of the vaccines would need to be discarded due to their limited shelf life. Additionally, he noted that there is a lack of interest from less affluent countries in other regions to accept vaccine donations. Warsaw is at the forefront of a broader effort within the European Union to renegotiate vaccine contracts.
This push comes in response to the diminishing demand for vaccinations and financial strains resulting from the aftermath of the conflict in Ukraine and the expenses incurred in accommodating refugees. Pfizer’s latest proposal, as outlined in the letter, involves a reduction in vaccine doses; however, it still stipulates a cancellation fee, equivalent to half the price of a dose.
In response to the legal action, Pfizer issued a statement, expressing its ongoing collaboration with the European Commission and governments to find pragmatic solutions to the evolving needs of the pandemic.
Polish Health Minister Katarzyna Sojka acknowledged the gravity of the lawsuit and expressed optimism about a favourable resolution. In an interview with TVN 24, Sojka emphasized that Warsaw is not alone in facing such challenges within the European Union, alluding to a broader collective issue requiring careful international consideration.
The Minister believes there is a chance to navigate this intricate legal process successfully, echoing sentiments of cooperation and resolution. As the first hearing approaches, the world watches closely, anticipating the outcome of this consequential clash between a pharmaceutical giant and a nation navigating the complexities of a global health crisis amid geopolitical turmoil.
