Naftogaz wins $2.56 bln legal dispute with Gazprom in Stockholm arbitration

Naftogaz wins $2.56 bln legal dispute with Gazprom in Stockholm arbitration

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Ukrinform
The Stockholm arbitration ruled that Russia’s Gazprom pay NJSC Naftogaz of Ukraine $4.63 billion in compensation for failure to deliver the agreed transit gas volumes.

"As a result of today's hearing in Stockholm arbitration, Naftogaz receives compensation in the amount of $4.63 billion for Gazprom's failure to deliver the agreed transit gas volumes," the press service of the NJSC Naftogaz of Ukraine posted on Facebook.

Thus, following two arbitration proceedings, Gazprom owes Naftogaz $2.56 billion.

At the same time, the arbitration court rejected Gazprom's claims regarding the fines for the volumes of transit gas, allegedly taken by Naftogaz illegally.

As reported, in November 2017, the Arbitration Institute of the Stockholm Chamber of Commerce put off the deadlines for delivering judgments in the cases between NJSC Naftogaz and Russia’s Gazprom until the end of December 2017 and the end of February 2018 as the Russian company had lodged an appeal against a separate arbitration’s judgment on the gas supply contract.

To date, there are two effective contracts between Naftogaz and Gazprom: on gas supply and gas transit through the territory of Ukraine. In 2014, the legal proceedings over the both contracts were initiated in Stockholm.

In particular, the transit dispute relates to the failure to deliver and pay for the transit services in 2009-2016.

As Naftogaz claimed, the transit contract stipulates that Ukraine has the right to demand the tariff revision if the conditions for forming the transit tariffs in Europe are changed. After the contract had been signed, the so-called Third Energy Package was adopted, and the conditions for forming the transit tariffs in Europe changed significantly.

Naftogaz demands that the transit tariff be brought in line with the European conditions. Gazprom has been refusing to revise the tariff for more than five years. Therefore, NJSC Naftogaz of Ukraine lodged a lawsuit with the Arbitration Institute of the Stockholm Chamber of Commerce.

Naftogaz also demands that the transit contract be brought in line with the European legislation, which Ukraine has implemented due to its accession to the Energy Community.

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