Stockholm arbitration cancels Gazprom`s take or pay demands to Naftogaz

The demand of the Russian gas monopoly Gazprom that Ukraine annually buy 52 billion cubic meters of gas or pay for it even without buying (the ”take or pay” principle), was canceled by a separate award rendered by the Arbitration Institute of the Stockholm Chamber of Commerce, Naftogaz of Ukraine`s press service reports.

”The Stockholm arbitration satisfied in full the demands by Naftogaz regarding the take-or-pay principle. We confirm the information that these requirements have been canceled,” the company press service said.

Ukraine, represented by Naftogaz, filed a lawsuit against Russian Gazprom with the Stockholm Arbitration claiming violations by the Russian side of two contracts: on the transit of Russian gas to the EU via Ukraine and on the purchase and sale of Russian gas by Ukraine.

In October-December 2016, the Arbitration Institute of the Stockholm Chamber of Commerce held hearings of the gas dispute over the terms of the contract concluded between the companies in 2009.

On April 7, Naftogaz CEO Andriy Kobolev said that the latest information on a possible decision, soon to be taken at the Stockholm Arbitration in the Naftogaz suit regarding the gas purchase contract, was rather optimistic for Ukraine. He added that Gazprom was already considering their actions in case they lost the case.

According to the 2016 financial report by Naftogaz, the company demands $17.9 billion from Gazprom, while the Russian monopoly`s claims against Naftogaz amount to $45.7 billion.

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