Gazprom loses Ukraine legal battle
MOSCOW, March 1, 2018 – Russia’s Gazprom will have to pay USD 2.56 billion to Ukraine’s Naftogaz following a lengthy arbitration procedure with multiple claims and counter-claims, international media reported on Thursday.
The Stockholm arbitration court also ordered Naftogaz to purchase 5 bcm (177 bcf) of gas per year from Russia, Reuters reported. The ruling concluded litigation between the two companies, part of which centred on transit fees Russia was required to pay to export gas to Europe through Ukraine. The proceedings started following Russia’s takeover of Crimea from Ukraine in 2014.
Gazprom has nevertheless halted March deliveries of gas to Ukraine citing discrepancies in the contract, prompting Kiev to threaten further legal action, Reuters claimed in a separate report.
“As of now, an additional agreement to the existing contract with Naftogaz on gas supplies, which is necessary to start supplies, has not been agreed,” Gazprom deputy chief Alexander Medvedev told the agency.