“”Gazprom” appealed the arbitration decision in its dispute with Naftogaz for transit

– “Gazprom” on March 29, 2018 filed in court of appeals district of Svea (Sweden) is successfully challenged and the partial annulment of the final decision on arbitration “Naftogaz of Ukraine” in the case of gas transit.

In the message of the Russian company grounds of the petition are called “significant procedural violations committed by the arbitrators in making this decision.”

In late February, ended years of dispute between companies in the Stockholm arbitration court which has obliged “Gazprom” to pay “Naftogaz of Ukraine” $4.63 billion for failure to supply the agreed volumes of gas for transit. Thus, the results of two arbitration of disputes between companies on supply and transit of gas “Gazprom” should pay NAC $2.56 billion

Two arbitration dispute “Gazprom” to “Naftogaz” lasted in the Stockholm arbitration more than three years: the court of the debt for gas from June 2014 to December 2017, according to the transit contract from October 2014 to February 2018. And by the end of the term of the contract (transit and contractor) is less than two years (end of 2019).

“Gazprom” on March 21 filed in court of Appeals district of Svea a petition for partial annulment of the final decision on arbitration “Naftogaz of Ukraine” for supply.

Ekonomika27 March 2018″Naftogaz” accused “Gazprom” in refusing to execute the Stockholm arbitrarity read more

“Since the final decision of the arbitrators on the dispute based on the same insights that previously adopted a separate decision of the arbitration proceedings, the petition filed on similar grounds – namely, because the arbitrators exceeded their authority when making decisions and they made serious procedural mistakes,” said the company.

7 November 2017, Gazprom filed in court of Appeals district of Svea (Sweden) application challenging separate decisions of arbitration “Naftogaz of Ukraine” for supply and partial cancellation.

Contracts for the supply and transit of gas between the companies operate from 2009 to 2019.

Earlier “Gazprom” declared that “the Stockholm arbitration court, being guided by double standards, has adopted an asymmetric solution.”

On 1 March it became known that “Gazprom” has received and returned the advance payment of “Naftogaz” for March. The next day, the head of Board “Gazprom” Alexey Miller said that the Corporation, after the decision of the Stockholm arbitration is not in their favor cancels a contract for the supply and transit of gas from NAK “Naftogaz Ukraine”. As it turned out, “Gazprom” has begun procedure of dissolution of the contract, not to pay penalties in 2018 and 2019

Russian energy Minister Alexander Novak explained that in one case (for supply contract – if) Stockholm arbitration court did not take into account the conditions that are spelled out in the contract, the requirement of “take or pay” (take-or-pay) specific volume (gas supply contract – if), and in the other case (the transit contract – Interfax) counted “Gazprom” penalties for those conditions that were not spelled out in the contract, citing the fact that the Ukrainian economy has suffered economic damage.

“Thus, the court essentially decided that the expense of Gazprom to subsidize the Ukrainian economy. Naturally, this led to the fact that such contracts under these conditions becomes economically inexpedient, and “Gazprom” made the right decision to start the procedure for termination of these contracts”, – said the Russian Minister.

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