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Ukrainian government approves amicable agreement with Gazprom

Justice Minister Denys Maliuska has been authorized to sign the agreement

© REUTERS/Valentyn Ogirenko

KIEV, December 28. /TASS/. Ukrainian government has approved signing of an amicable agreement with Gazprom, press service of the country’s cabinet of ministers reported on Saturday.

"To approve the draft of amicable agreement on the claim filed by PJSC Gazprom against the state of Ukraine, which is being considered by the ad hoc arbitration court in accordance with the Arbitration Rules of the UN Commission on International Trade Rights (UNCITRAL)," the decree published on the government’s website said.

Justice Minister Denys Maliuska has been authorized to sign the agreement.

The amicable agreement settles the claims of the Antimonopoly Committee of Ukraine against Russia's Gazprom amounting to around $7 bln. Russia’s Energy Minister Alexander Novak said earlier this week that the sides would sign an amicable agreement on December 19, after which all claims would be withdrawn and attachments of Gazprom’s property in Europe would be lifted.

The Antimonopoly Committee of Ukraine fined Gazprom for allegedly abusing its monopoly position on the gas transit market in 2009-2015 with 86 bln hryvnias ($3.6 bln at the current exchange rate), and later it received a decision of a Kiev court to enforce the collection of 172 bln hryvnias with late fees (around $7 bln). Ukraine started the process of recovering Gazprom’s assets in the country in 2017. Gazprom disputed the actions of the Ministry of Justice in Ukrainian courts.

In October 2018, Gazprom initiated a litigation against Ukraine in accordance with the Arbitration Rules of UNCITRAL. The hearings were scheduled for June 2021 in Geneva.

Gazprom submitted an official proposal to Naftogaz of Ukraine on extending the current or concluding a new contract for gas transit through the Ukrainian territory in 2020 on November 18. The Russian side requested withdrawal from all mutual claims in the international arbitration and termination of all legal proceedings, including reversal of the decision of the Antimonopoly Committee of Ukraine, as well as withdrawal of Naftogaz’ legal application initiating an investigation against Gazprom by the European Commission, as obligatory conditions.

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