17.6.3. Transactions with entities related to the State Treasury
As at 31 December 2021 and 31 December 2020 the State Treasury owned 27.52% of the ORLEN Group Parent Company’s shares – PKN ORLEN and has ability to exert a significant influence on it.
Therefore, entities related to ORLEN Group companies are those entities over which the State Treasury exercises direct control (subsidiaries) or indirectly (jointly controlled entities).
The Group identified transactions with related parties, which are also parties related to the State Treasury, based on the „List of companies with State Treasury share” provided by the Prime Minister’s Office.
In 2021 and in 2020 and as at 31 December 2021 and as at 31 December 2020, the Group identified the following transactions:
| 2021 | 2020 | |
|---|---|---|
| Sales | 4 953 | 2 297 |
| Purchases | (9 653) | (5 146) |
| 31/12/2021 | 31/12/2020 | |
|---|---|---|
| Trade and other receivables | 687 | 653 |
| Trade and other liabilities | 1 571 | 592 |
Above transactions were concluded on an arm’s length basis, were related to the ORLEN Group current operating activities and concerned mainly fuel sales, purchase and sales of natural gas, energy, transport and storage services.
Additionally, there were also financial transactions (loans, guarantees, bank fees, commission) Bank Gospodarstwa Krajowego.
At the end of 2020, PKN ORLEN and other companies from the ORLEN Group, instructed by the Prime Minister submitted under the decision issued pursuant to Art.11h section 3 and 4 of the Act of 2 March 2020 on special solutions related to the prevention, counteraction and combating of COVID-19, other infectious diseases and crisis situations caused by them, involved in the preparation of temporary hospitals in Płock and Ostrołęka in order to provide additional beds for patients with COVID-19. The costs incurred in connection with the implementation of the temporary hospital construction project for 2021 and 2020 to be reimbursed on the basis of contracts between PKN ORLEN and the State Treasury – the Minister of State Assets amounted to PLN 3 million and PLN 39 million, respectively.