The debt of Russia’s PJSC Gazprom to national joint-stock company Naftogaz Ukrainy over the non-execution of the award of the Arbitration Institute of the Stockholm Chamber of Commerce to pay $2.56 billion has increased by almost $200 million, Naftogaz COO Yuriy Vitrenko has said.
“We will make Gazprom comply with the transit award and pay us $2.56 billion with nearly $200 million in interest for the past year,” Vitrenko said.
Naftogaz recalled one year ago, the Stockholm arbitration tribunal ruled in favor of Naftogaz regarding the most important issues in its dispute with Gazprom. Gazprom still owes Naftogaz USD 2.56 billion as well as interest on this debt. After refusing to comply with the arbitration award, Gazprom challenged the verdict with the Svea Court of Appeal. The hearing on the merits and the decision of the Court of Appeal is expected in 2020.
Naftogaz has initiated debt enforcement procedures against Gazprom under the arbitration award in several jurisdictions including the Netherlands, the United Kingdom, Switzerland, the United States, and most recently in Luxembourg. Similar proceedings may also start in other countries in the near future.
In the Netherlands and the United Kingdom, where Naftogaz succeeded in identifying Gazprom assets, they have been attached by courts in response to Naftogaz requests.
As reported, in February 2018, the Arbitration Institute of the Stockholm Chamber of Commerce issued an award regarding a dispute between Gazprom and Naftogaz under a contract for transit shipments of natural gas through the territory of Ukraine. The tribunal obliged Gazprom to pay Naftogaz $4.63 billion for the shortage of agreed volumes of gas for transit. According to the results of two arbitration disputes between the companies for the supply and transit of gas, Gazprom is to pay $2.56 billion to Naftogaz.
