Gazprom’s Appeal Hearing on Decision in Favor of Naftogaz Begins
Gazprom still owes Naftogaz $2.56 billion as well as interest on this debt
A hearing begins today (Oct. 9) in Sweden on Gazprom’s appeal against the Stockholm arbitration tribunal’s decision in the case of Naftogaz on gas supplies and transit.
“Together with the best lawyers in the world, we are preparing for hearings in the court of appeal on the decision of the arbitration against Gazprom,” Naftogaz Executive Director Yuriy Vitrenko wrote on Facebook.
A decision on the appeal arrives in a few months, Vitrenko said.
Last year the Stockholm arbitration tribunal ruled in favor of Naftogaz on the most important issues in its dispute with Gazprom. The tribunal awarded $4.63 billion in compensation to Naftogaz, with $2.1 billion set off against Naftogaz’s debt for gas delivered in 2014-2015 but not paid due to a price disagreement. This gas was sold in Ukraine and taxes were paid to the state budget.
Gazprom still owes Naftogaz $2.56 billion as well as interest on this debt.
The award came following a marathon four-year arbitration process between the two companies over gas sales and gas transit contracts. If Naftogaz had lost the two cases, the damage сould have totalled $94.7 billion.