MOSCOW, September 27. /TASS/. Gazprom rejects all claims of Naftogaz of Ukraine on proceedings regarding the transit of Russian gas to Europe, will not pay for transit services that were not provided by the Ukrainian company and warned it about possible Russian sanctions if the trial continues. This is according to a statement of the Russian holding.

"Gazprom strongly rejects all the claims of Naftogaz of Ukraine on the initiated proceedings regarding the transit of Russian gas to Europe - services not provided by the Ukrainian side should not and will not be paid. Gazprom has notified the secretariat of the International Court of Arbitration (ICA) of the International Chamber of Commerce and the current head of Naftogaz of Ukraine about this today," the company said.

Gazprom also believes that the current circumstances deprive it of its fundamental right to a fair and impartial hearing in court.

"Gazprom considers the filing of Naftogaz of Ukraine’s appeal to be an unfriendly step and a continuation of the Ukrainian company's bad faith behavior, and that further attempts by Naftogaz of Ukraine to seek consideration of the dispute in the IAC may lead to the fact that the Russian state authorities will have every reason to impose sanctions against Naftogaz of Ukraine and to include it in the sanctions list of persons. In practice, this will mean that Gazprom will be banned from fulfilling its obligations to sanctioned persons under completed transactions, including financial transactions," Gazprom stressed.

"Naftogaz refused to fulfill its transit obligations through the Sokhranovka station, without proper grounds, while recognizing the very fact of non-provision of services, Gazprom noted.

Naftogaz is well aware that, under the agreement dated December 30, 2019, default on its part means no payment even if Naftogaz claims a force majeure event on the territory of Ukraine. Moreover, the specified agreement, concluded in 2019 under Swedish law, determined Zurich in Switzerland as the place for resolving the disputes of the parties. Thanks to the huge number of anti-Russian sanctions imposed, Sweden and Switzerland have moved into the category of countries unfriendly to the Russian Federation. Significantly changed circumstances deprive Gazprom of the fundamental right to a fair and impartial hearing, both in the arbitration itself and in the state courts at the place of its holding," the Russian company concluded.

On situation with lawsuit and transit through Ukraine

In early September, Naftogaz of Ukraine filed a petition for arbitration with the International Arbitration Court against Gazprom for allegedly late payment for gas transportation services through Ukraine. Naftogaz is also evaluating the possibility of making additional demands on the Russian company.

On May 10, the Gas Transmission System Operator of Ukraine said it would shut down transit of gas to Europe via the Sokhranovka station starting May 11 due to force majeure as the company could allegedly not control the Novopskov gas compressor station in the Lugansk Region.

However, the Russian gas holding did not see any grounds for suspension of pumping in the previous form, noting that it did not receive any confirmation of the force majeure circumstances. The company added that it was technologically impossible to shift all transit volumes to another interconnection point, the Sudzha gas distribution station in Russia’s Kursk Region.