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Court finds decree on payment in rubles force majeure, says Gazprom Export

Moreover, the tribunal declared the decree by the Russian president dated March 31, 2022, on the shift to payments for gas in rubles a force-majeure circumstance under the contract, confirming the legality of suspension of gas deliveries if the buyer fails to pay in rubles

MOSCOW, November 17. /TASS/. The Arbitration Court of Stockholm recognized the Russian President's decree to switch to paying for gas in rubles as force majeure under the contract and also obliged the Finnish Gasum to pay Gazprom Export a debt of over 300 million euros for gas supplies, the Russian company said in a statement on Thursday.

"On November 14, 2022, a decision was made following ad hoc arbitration proceedings in Stockholm between Gazprom Export and the Finnish company Gasum Oy. In its decision, the arbitration tribunal, among other matters, obligated Gasum to repay a debt worth over 300 mln euro to Gazprom Export for gas supplies and due to failure to fulfill the ‘take or pay’ obligation, as well as interest on delayed payment," the statement said.

Moreover, the tribunal declared the decree by the Russian president dated March 31, 2022, on the shift to payments for gas in rubles a force-majeure circumstance under the contract, confirming the legality of suspension of gas deliveries if the buyer fails to pay in rubles, Gazprom Export noted.

The court ordered the companies to continue negotiations on the contract to settle the situation with further deliveries, the Russian company added.

On Wednesday, the Finnish state energy company said it was not obligated to pay in rubles for Russian gas according to a ruling issued by the arbitral tribunal, and that the parties should continue their negotiations to resolve the situation with supplies.

In May, Gazprom Export suspended gas supplies under its contract with Gasum due to the Finnish side’s failure to pay for April and its refusal to pay in rubles. After that Gasum said it would not fulfill Gazprom’s demand to pay for shipments of gas in rubles, adding that it had decided to file a petition in court for an investigation on the current contract with Gazprom Export, which expires at the end of 2031. In response Gazprom noted that it would protect the company’s interests in the arbitration using all available means.

In 2021, Gazprom Export supplied 1.49 bln cubic meters of gas to Gasum, which amounted to two-thirds of the total gas consumption in Finland.

Instead of pipeline gas, Finland started purchasing LNG from the Cryogas-Vysotsk LNG facility owned by Novatek. As the Chairman of the Management Board Leonid Mikhelson said at the St. Petersburg International Economic Forum, most of the gas from Vysotsk was going to Finland.

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