The Stockholm arbitration court sought with “Naftogaz” to “Gazprom” to $1.7 billion

MOSCOW, June 30. /TASS/. “Gazprom” has decided to appeal the interim decision of the Stockholm arbitration on the dispute with Naftogaz on appeal. It on a press-conferences were declared by the head of the company Alexey Miller.

“According to preliminary economic assessment in accordance with the interim decision of the Stockholm arbitration, the amount of recovery from the “Naftogaz of Ukraine” to “Gazprom” more than $1.7 billion, however, the reasoning of the arbitrators on many issues interim solution seems inadequate, and “Gazprom” made the decision to appeal the interim decision of the Stockholm arbitration in the court of Appeal of Sweden,” Miller said.

Alexei Miller also said that Gazprom will appeal to the Cabinet of Ministers of Ukraine to protect their investment in the interstate agreement, and if the breaches are not resolved in international arbitration.

“In 1998, between Russia and Ukraine signed an agreement on encouragement and mutual protection of investments. And based on this agreement, “Gazprom” has decided to notify the Cabinet of Ministers of Ukraine to eliminate violations, which you listed in your question. If these violations are not addressed, then, based on the provisions of the 1998 agreement, “Gazprom” will turn to international arbitration as stipulated in the current agreement,” said Miller.

At the end of may the Stockholm arbitration court abolished the requirement of “take or pay” Gazprom’s contract on gas supplies to Ukraine. It was explained that the court decision also fully repealed the ban on gas re-export, and the revised formula of gas prices from 2014, which will now be tied to the quotations at the European gas hubs.

In January “Gazprom” sent “Naftogaz” account to pay for gas, not selected Ukrainian company in the second and fourth quarters of 2016 under the “take or pay” in the amount of $5,319 billion, the Ukrainian side stated that it will not pay pending a decision of the court in Stockholm. From November 2015, Ukraine imported gas at the current contract with Gazprom.

In April “Gazprom” has specified the amount of the claim to “Naftogaz of Ukraine”, increasing it to $37 billion from $31,759 billion This amount includes requirement for payment of the debt for delivered in may – June 2014 gas, payment on the obligation “take or pay” for 2012-2016, as well as penalties for late payment of gas.

Gazprom against Naftogaz

“Gazprom” in 2014 appealed to the arbitration Institute of the Stockholm chamber of Commerce a request for arbitration with the aim of collecting with “Naftogaz of Ukraine” debt for unpaid natural gas and interest for said debt. On the same day, “Naftogaz of Ukraine” has addressed in arbitration with claims about the retroactive change in the price of natural gas, the recovery of all overpayments made since may 20, 2011 in the amount of $6 billion, and cancellation provisions of the contract, prohibiting the sale supply on it’s natural gas outside of Ukraine. The cases were consolidated.

Later, Naftogaz filed a second suit, demanding to oblige “Gazprom” to compensate for the decrease in transit in the amount of $3.2 billion and another $3 billion for the low transit rate. Gazprom, in turn, sent to the Stockholm international arbitration clarified the requirements for “Naftogaz” – after you add a payment for the remaining volume in the third quarter of 2015, the total amount of claims rose to $31,759 billion the Amount of claims of claims of “Naftogaz of Ukraine” to “Gazprom” in the Stockholm arbitration amounted to us $26.6 billion.