m3n4.net September 22, 2018

Ukraine welcomes Stockholm court ruling on gas transit dispute with Russian Federation

04 March 2018, 03:52 | Tara Lloyd

The logo of Russian gas giant Gazprom is seen on a board at the SPIEF 2017 in St. Petersburg Thomson Reuters

The logo of Russian gas giant Gazprom is seen on a board at the St. Petersburg International Economic Forum 2017 in St. Petersburg Russia

"Technically, Gazprom has been obliged to pay this sum since yesterday evening".

Image: Gazprom headquarters in Moscow, Russia. Photo by Boevaya mashina/Wikimedia Commons.

Ukraine notified the European Union (EU) for an early warning for a crisis in the energy sector because of Gazprom's refusal to comply with the Stockholm arbitration court decision.

The legal battle between Gazprom and Naftogaz in the Arbitration Institute of the Stockholm Chamber of Commerce had rumbled on since June 2014.

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Gazprom said Thursday it disagrees with the arbitration final ruling on the contract for gas transit via Ukraine and "will defend its rights through all means available under applicable legislation".

The Stockholm Arbitral Tribunal has ordered Russia's Gazprom to pay $4.63bn in damages to Ukraine's state natural gas company Naftogaz in a gas transit lawsuit.

Gazprom's Miller is reportedly very unhappy with the terms of the deal that dictate both volumes and prices to the Russian gas company. The first delivery should have been this month. Gazprom has said it will contest the ruling.

Gazprom announced on Saturday that the company launched procedures in the Stockholm worldwide arbitration court to terminate its gas supply contracts with Ukrainian gas company Naftogaz.

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The decision concludes a three-year dispute between the two companies.

According to Reuters, Naftogaz will go to court again to claim compensation for Gazprom's latest failure to deliver gas.

But it said the court's decision had created a "material imbalance, which infringes the basic principals of Swedish law, which regulates the (gas) contract". Since November 2015, Kiev has not bought Russian gas, replacing it with reverse gas from Europe.

In his arguments in the Stockholm arbitration regarding the need to revise the tariffs, Naftogaz used the new rules of pricing of gas transportation services in the country adopted by the national regulator (the National Commission for Energy, Housing and Utilities Service Regulation).

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