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Russia-Ukraine gas dispute

Gazprom files documents for termination of contracts with Ukraine to Stockholm court

Earlier, Miller said that Gazprom could keep gas transit through Ukraine in the amount of 10-15 billion cubic meters a year, if Ukraine proves economic feasibility of the new contract

© Vitaliy Nevar/TASS

MOSCOW, April 20. /TASS/. Gazprom has sent documents for termination of gas supply and transit contracts with Naftogaz of Ukraine to the Stockholm Arbitration Court, as the negotiations failed to produce results, the Russian gas holding said in a statement.

"Today, PJSC Gazprom sent documents to the Stockholm Arbitration Court to terminate contracts with Naftogaz of Ukraine for the supply of gas and its transit through the territory of the republic. The negotiations with Naftogaz of Ukraine did not lead to any result," the company said.

Read also

Russia says it is ready for partial use of Ukrainian gas transportation system after 2019

On Friday, Gazprom CEO Alexei Miller told reporters that the company is ready to hold negotiations with Naftogaz of Ukraine on gas transit after the expiration of the current contract.

"Gazprom is ready to negotiate with Naftogaz of Ukraine on gas transit after 2019. However, Ukraine should ground economic feasibility of the transit through its territory," he said

In late March, Gazprom and Naftogaz of Ukraine began negotiations on termination of contracts for the supply and transit of gas. This procedure was initiated by the Russian holding.

Earlier, Miller said that Gazprom could keep gas transit through Ukraine in the amount of 10-15 billion cubic meters a year, if Ukraine proves the economic feasibility of the new contract.

Gas dispute

The two companies plunged into a litigation over gas supplies and transit contracts since 2009 with the Arbitration Institute of the Stockholm Chamber of Commerce back in 2014.

Gazprom is demanding more than 37 billion dollars from the Ukrainian company for gas under the take-or-pay clause for 2012-2016, for the payment for gas supplied in May-June 2014 and gas debts.

Read also

Russia's energy chief puzzled by Stockholm court’s decision on Gazprom-Naftogaz dispute

In December 2017, the court ordered Naftogaz to pay Gazprom $2 bln for the deliveries, but reduced the annual contractual volume of purchases to 5 billion cubic meters. At the same time, the "take or pay" condition was preserved for 80% of this volume. This condition will be effective only in 2018.

As for the gas transit contract, in February 2018, the Stockholm court ruled that Gazprom’s obligation will remain (110 billion cubic meters per year). The Russian company should also pay $2.56 bln to Naftogaz for the shortfall in transit volumes.

In March, Gazprom returned Naftogaz prepayment for the March deliveries and notified the Ukrainian company that it was going to start the procedure of termination of contracts. This procedure can take 1.5-2 years.

Gazprom CEO Alexei Miller noted that, guided by double standards, the Stockholm court took asymmetric decisions, which significantly violated the balance of interests of the parties under the agreements.

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Russia-Ukraine Gas Dispute

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