“The Stockholm arbitration court has postponed decisions on disputes “Naftogaz” to “Gazprom”

The adjudication of contracts for the supply and transit of gas scheduled for 30 December 2017 and 28 February 2018

– Arbitration Institute of the Stockholm chamber of Commerce November 9, has postponed the deadline for issuing decisions in cases between “Naftogaz of Ukraine” and “Gazprom” contracts on delivery and gas transit on 30 December 2017 and 28 February 2018, respectively.

As they say in a statement on Tuesday, the press release of the Ukrainian company, such actions arbitration associated with the filing of “Gazprom” November 7, appeals against a separate decision of the Tribunal dated may 31, 2017 contract for the supply of gas.

Previously chief commercial officer of Naftogaz Yuriy Vitrenko reported that the Stockholm arbitration, on 10 October, has completed the hearings in the framework of litigation between the two companies and the final decision was expected before the end of November.

As previously reported, Gazprom November 7, filed in court of appeals district 356 of Svea (Sweden) the application challenging the interim (separate) decisions of the Stockholm arbitration on the claim regarding the gas supply contract dated 19 January 2009 and its partial abolition, said Russian company in its report. Interim decision was handed down on 31 may. The final decision must be rendered no later than 30 Dec 2017, according to “Gazprom”.

At the end of June the head of “Gazprom” Alexey Miller said that “according to preliminary economic assessment in accordance with the provisional decision of the Stockholm arbitration recovery of “Naftogaz” to “Gazprom” more than $1.7 billion”. “However, the reasoning of the arbitrators on many issues interim solution seems inadequate. And “Gazprom” made the decision to appeal the interim decision,” said Miller.

The claim of “Naftogaz” to “Gazprom”

The claim of “Naftogaz” to “Gazprom” for the transit contract amount to $12.3 billion in parts backorders and underpayments for services to the transit through the GTS of Ukraine in the 2009-2016 years. NAK wants to bring the contract into line with European antitrust and energy law, to oblige Gazprom to provide Schipper codes.

According to the Ukrainian side, the Tribunal granted the request of “Naftogaz” about the revision of prices to reflect market conditions since April 2014. Arbitration ordered to change the position of the contract between “Naftogaz” and “Gazprom” about the principle “take or pay”, lifted the ban on re-export by Ukraine of gas. In this case, “Naftogaz” is entitled to restitution for overpayment for gas in the fourth quarter of 2014 and in 2015. At the same time, Gazprom will be able to receive additional payment for gas deliveries in the second quarter of 2014.

Meanwhile, Gazprom believes the preliminary decision of the Stockholm arbitration court about the conditions of the contract for the supply of gas to “Naftogaz of Ukraine” a positive for yourself, said earlier the Chairman of Board “Gazprom” Alexander Medvedev.

He also refuted the statement of the Ukrainian side, the court abolished the rule of “take or pay” contract. In this contractual principle has based a large part of the claims of “Gazprom”.

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