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Naftogaz to sue Gazprom for $110 mln to compensate difference in EU gas price

Naftogaz refused to purchase Russian gas in 2015, since then, Ukraine has been supplied with reverse gas from Europe

KIEV, September 25. /TASS/. Ukraine’s Naftogaz plans to sue Russia's Gazprom for $110 mln in compensation for the difference in the price of gas that Kiev is forced to purchase from Europe due to the lack of Russian supplies, Chief Operating Officer of the Ukrainian company Yuriy Vitrenko said on Tuesday.

"We have initiated a new arbitration proceeding and intend to force Gazprom to compensate the difference in the (price of - TASS) gas that we purchase on the European market and the gas that would have been stipulated by the contract changed in the arbitration. We will force Gazprom to compensate that price difference, and the compensatory amount already exceeds $110 mln," he emphasized.

On February 28, 2018, the Arbitration Institute of the Stockholm Chamber of Commerce satisfied Naftogaz’s motion to get reimbursed for undelivered gas for transit worth $4.63 bln against Gazprom. Meanwhile, the court confirmed the debt of the Ukrainian company to Gazprom for the gas supplied in 2013-2014 amounting to $2 bln. This brings Gazprom’s debt to Naftogaz according to results of the two arbitration proceedings in Stockholm to $2.56 bln.

The Ukrainian gas company announced a court-ordered forced collection of funds through the arrest of Gazprom’s assets in Switzerland, Britain and the Netherlands in the summer. The Svea Court of Appeal in Sweden upheld Gazprom’s appeal, ruling to suspend the enforcement of the company’s assets seizure by Naftogaz, which in its turn vowed that it would continue its efforts to freeze the Russian gas company’s assets.