Stockholm arbitration: Naftogaz received $2.9 billion from Gazprom

Naftogaz of Ukraine confirmed receipts of $2.918 billion from Gazprom for fulfillment of the Stockholm Arbitration Award 2018.

Thus, in total, as a result of the transit arbitration, Naftogaz received $5 billion from Gazprom. Today's payment of Gazprom includes repayment of both the unpaid part of the compensation awarded ($2.56 billion) and the interest accrued since the announcement of the decision on February 28, 2018. Naftogaz welcomes the recognition by the Russian side of the need to comply with arbitrations in 2017-2018 and its intention to continue transporting gas to the EU through Ukraine.

The parties continue negotiations on the terms of further cooperation after the end of the current contract on January 1, 2020. It should be recalled that on February 28, 2018, the Stockholm Arbitration Tribunal ruled in favor of Naftogaz on most important issues in the dispute with Gazprom. The Tribunal confirmed Gazprom's breach of its transit commitments and awarded $4.63 billion in compensation.

This decision means that Gazprom had to pay Naftogaz about $2.56 billion, taking into account the final gas bill set in 2014 and 2015. The first part of $2.1 billion compensation of $4.63 billion (40%) awarded, Naftogaz received in the form of gas supplied by Gazprom in 2014. Naftogaz reflected it in the 2017 financial statement and paid the corresponding taxes and dividends to the state budget in 2018.


 

Tags: gas, Naftogaz, contracts, Stockholm arbitration, gas transit

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