Naftogaz suing Gazprom for $6.2 billion for transit reduction, adaptation of contract to EU terms

Photo: Reuters

Ukraine’s national oil and gas company Naftogaz Ukrainy filed a claim against Gazprom with the Arbitration Institute of the Stockholm Chamber of Commerce on October 13, 2014, concerning the retroactive review of a transit contract for 2009-2019, Gazprom said.

«On 13 October 2014 National JSC Naftogaz Ukrainy submitted a request for arbitration to the Arbitration Institute of the Stockholm Chamber of Commerce, Sweden, against OAO Gazprom, seeking:

(1) to acknowledge that rights and obligations of National JSC Naftogaz Ukrainy under Contract on volumes and terms of gas transportation contract through Ukraine in 2009-2019 years should be transferred to Public JSC Ukrtransgaz;

(2) to acknowledge that certain provisions of Contract, that will be subsequently updated, are invalid and/or inoperative and should be supplemented with or substituted by provisions that will be updated in line with the energy and anti- monopoly legislation of Ukraine and EU;

(3) to oblige OAO Gazprom to pay a compensation of $3,200 million (and related interest) to National JSC Naftogaz Ukrainy for the failure to provide gas for transit;

(4) to acknowledge that the transit tariff stipulated in Contract should be revised in such a way as provided in further written statements of National JSC Naftogaz Ukrainy in line with key principles of the Swedish contractual law,» Gazprom said in a report.

The claim totals approximately $6.2 million. Gazprom filed its response to the request of arbitration on November 28, 2014, and on December 11, 2014, the arbitration panel was formed, Gazprom said.