: :inin Kyiv (EET)

Naftogaz tells of consequences for Gazprom in case it loses Stockholm arbitration

If Ukraine`s oil and gas giant NJSC Naftogaz of Ukraine wins its battle with Gazprom in the Stockholm arbitration court, Russia`s gas giant will annually pay $4 billion more for gas transit via Ukraine, Chief Commercial Officer of NJSC Naftogaz of Ukraine Yuriy Vitrenko wrote on Facebook ahead of the hearing regarding the transit contract, which is taking place today, November 21.

”Gazprom will have to pay us tens of billions of dollars of compensation, sell gas at a much lower price, pay $4 billion more for transit annually, and not hinder our integration into the European market,” he said.

Vitrenko listed Naftogaz`s demands to Gazprom, including the establishment of a transit tariff in line with the European regulations and the compliance with Ukrainian and international legislation in the event of a change of contract provisions.

He accused Russia of abusing ”its dominant position in the gas market” and ”discrimination of Ukraine compared with European countries”.

”The Tribunal of three arbitrators must decide not a political, but a legal dispute – how to interpret contracts, the rule of law and how to apply them. The parties have filed thousands of pages  worth of documents. The witnesses and experts are testifying. The lawyers are paying attention to every detail,” Vitrenko said.

”The world is looking at this arbitration as a test for Ukraine – how we as a nation are ready to defend our national interests, how we are ready to put competence above loyalty, how we understand that the success of our country is the success of each of us,” he added.

As UNIAN reported, Naftogaz has initiated litigation against Gazprom in the Arbitration Institute of the Stockholm Chamber of Commerce in relation to two contracts. One concerns transit shipments of Russian gas to the European Union via Ukraine and the other one deals with purchases of Russian gas by Ukraine.

In mid-March 2016, Gazprom raised its claims against Naftogaz in the Arbitration Institute of the Stockholm Chamber of Commerce to $31.759 billion from $29.2 billion.

According to Naftogaz`s annual report, the amount of claims against Gazprom as of July 31, 2016 amounted to $28.3 billion.

In mid-October of this year, the Arbitration Institute of the Stockholm Chamber of Commerce completed oral hearings of the proceedings over mutual claims by NJSC Naftogaz of Ukraine and Russian gas monopoly Gazprom. The court also heard experts and witnesses of the proceedings.

The hearings on the transit contract will start on Monday, November 21.

The Stockholm arbitration is expected to deliver its final decision on the case by March 31, 2017.


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