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Arbitration court obliges Gazprom to pay $4.63bln over gas transit dispute — Naftogaz

In 2014, Gazprom and Naftogaz filed lawsuits against each other in the Stockholm Arbitration

KIEV, February 28. /TASS/. The Arbitration Institute of the Stockholm Chamber of Commerce has imposed a $4.63-billion penalty on Russian energy giant Gazprom over its gas transit dispute with Ukraine’s national oil and gas company Naftogaz, the Ukrainian company said in its Twitter on Wednesday.

"In line with the Stockholm Arbitration Institute’s ruling, Naftogaz has been awarded a compensation of $4.63 billion for Gazprom’s non-delivery of agreed volumes of gas for transit," the statement reads.

In 2014, Gazprom and Naftogaz filed lawsuits against each other in the Stockholm Arbitration.

The court earlier ordered Naftogaz to pay Gazprom $2 billion. The latest ruling means that Gazprom owes more than two billion to Naftoaz overall, the Ukrainian company said.

Gazprom and Naftogaz signed the current contract for the supply of gas to Ukraine in January 2009 and it is valid until December 31, 2019. Under the contract, the volume of supplies was to be 40 billion cubic meters of gas in 2009, and 52 billion cubic meters starting from 2010. However, since 2012, Naftogaz failed to fully intake the contracted volume. Since November 2015, Kiev has bought no Russian gas, replacing it with reverse gas from Europe.

Ukraine sought a retroactive price change, recovery of overpayment for gas and cancellation of the "take or pay" principle. Gazprom demanded that Naftigaz should pay arrears for gas that had been supplied earlier.

Gazprom's demands for Naftogaz amounted to more than $37 bln. Naftogaz wanted Gazprom to pay $16 bln for gas transit.