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Ukraine’s Naftogaz confirms receiving $2.9bln from Russia’s Gazprom

Russia's Gazprom paid $2.9 billion to Ukraine's Naftogaz in accordance with the Stockholm arbitration ruling

KIEV, December 27. /TASS/. Ukraine’s Naftogaz confirmed on Friday it has received $2.9 billion from Russia’s Gazprom due under Stockholm arbitration ruling.

"We confirm the receipt of a compensation sum of $2.918 billion from Gazprom pursuant to the Stockholm arbitration tribunal’s ruling of 2018," Naftogaz wrote on its Facebook account.

According to Naftogaz, it has received an aggregate of $5 billion from Gazprom as a result of transit arbitration litigation. Thus, it said it had received the first compensation sum of $2.1 billion in the form of gas supplied by Gazprom in 2014. This sum was reflected in its records for 2017 and corresponding taxes to the state budget were paid in 2018, Naftogaz said.

"Today’s payment from Gazprom includes the unpaid part of the compensation sum worth $2.56 billion plus interest accrued since the pronouncement of the ruling on February 28, 2018," Naftogaz said.

"Naftogaz hails the fact that the Russian side has recognized the necessity to implement the arbitration rulings of 2017-2018 and its plans to continue gas transit to the European Union via Ukraine," the company said. "The sides continue negotiations on terms of further cooperation after the current contract expires on January 1, 2020."

Ukrainian President Vladimir Zelensky also confirmed the receipt of Gazprom’s payment, calling it "another victory" of Ukraine on his official Telegram account.

Russia’s Gazprom said earlier on Friday it had paid a sum of $2.9 billion to Ukraine’s Naftogaz.

Moscow and Kiev announced on December 20 they had agreed a new five-year gas transit contract to succeed the existing one that expired on December 31, 2019. They also said they had managed to settle mutual claims between Gazprom and Naftogaz.

Thus, the sides agreed that by the yearend Gazprom would pay a sum of $2.9 billion US dollars under the Stockholm arbitration tribunal’s ruling. Ukraine, in turn, would revoke its claims to arrest Gazprom’s assets and properties, as well as its anti-monopoly claims to a sum of $7.4 billion.