“Ukraine is winning again” - Naftogaz’s reaction regarding Gazprom’s loss of appeal against decision of Stockholm arbitration
Ukrainian oil and gas company Naftogaz won the appeal on the first complaint of the Russian energy company Gazprom against the decision of the Stockholm arbitration, which had previously satisfied the Ukrainian company’s claims for compensation for the volumes of gas not supplied by Russia for transit.
According to today’s decision, the demand of Russia’s Gazprom is rejected. In this regard, the decision of the arbitral tribunal cannot be reversed. The Court of Appeal did not reveal any violations by the arbitration during the trial, according to a press release on the website of the Svealand Court of Appeal.
Naftogaz’s Executive Director, Yuri Vitrenko, said the decision of the Court of Appeal could not be challenged: “Complete victory. Ukraine wins again. We won the appeal on Gazprom’s first appeal complaint against the Stockholm arbitration.”
He also published an unofficial translation of the decision of the Court of Appeal.
Thus, the Russian company must compensate Naftogaz for litigation in the amount of 1,021,774.26 euros and UAH 1,650,000, of which one million are legal expenses and pay interest in accordance with Section 6 of the Interest Act for the two above amounts from the moment the court decision is made until the moment of payment.
In turn, Dmitry Peskov, the press secretary of Russian President Vladimir Putin, said that Russian-Ukrainian negotiations on further gas transit are in time trouble, but it’s impossible to talk about any details of the negotiations now, Kommersant reports.
“We are under time-pressure, time is running out. Naftogaz must draw up a new structure, carry out all the necessary procedures, and we need to reserve the necessary number of volumes. Work is ongoing. Talking about some details of the negotiations is impossible now,” Peskov said.
He further noted that at this stage the parties are exchanging commercial offers.
The next tripartite technical meeting on gas transit should be held on November 29.
Before the start of the appeal hearing, Yuriy Vitrenko said that Gazprom’s first complaint concerns an arbitration decision that nullified Naftogaz’s obligations under the take-or-pay contract – Ukraine does not have to pay Russia about $ 80 billion.
Earlier, QHA media reported, that European courts rejected Gazprom’s appeal against the Stockholm arbitration decision. The debt of the Russian gas monopolist to Ukraine’s Naftogaz is already about $ 3 billion.
On February 28, 2018, the Stockholm Arbitration Court ruled to recover $ 2.56 billion from Gazprom in favor of Naftogaz in a lawsuit on the failure to fulfill a transit contract. However, Moscow began to threaten the cessation of gas supplies, which it has still not supplied to Ukraine for 2 years and 3 months.
Gazprom named two conditions necessary for the continuation of the transit of Russian gas to Europe through the gas transmission system of Ukraine after 2019: the cancellation of litigation between Gazprom and Naftogaz and the restoration of direct purchases of Russian gas by Ukraine.