Gazprom ordered to pay $2.56B to Naftogaz

Laura Christensen
March 4, 2018

This was reported by Interfax with reference to the Deputy Chairman of the Board of Gazprom Alexander Medvedev.

Ukraine has a shortage of natural gas of 10 million cbm per day, and from Saturday it cuts gas consumption by 5-10% for four days due to a lack of supplies from Russian Federation, said the Chief Executive Officer of Naftogaz, Andriy Kobolyev.

Disputing the decision of the Stockholm-based court, Gazprom said it "will defend its rights by all available means in accordance with the applicable law", Reuters reports. The arbitrators ground their decision by the fact that the situation with the Ukrainian economy has drastically worsened. We are strongly opposed to Ukraine's economic problems being solved at our expense. The decision has violated the balance of interests of the parties under these contracts, the head of Gazprom said.

A Stockholm arbitration court ordered Gazprom this week to pay more than $2.5 billion to Ukrainian energy firm Naftogaz - a ruling meant to conclude a long legal battle that has run alongside Ukraine's broader political stand-off with Russian Federation.

Bollywood veteran Sridevi passes away in Dubai
She was regarded as the First Female Superstar of Bollywood and one of the most popular actresses of Indian cinema. The Bollywood legend, who was married to film producer Boney Kapoor , made her debut as a child actor in 1967.

Gazprom's refusal to resume gas supplies to Ukraine caused an emergency gas shortage in Ukraine, thus forcing the government's hand.

Ukraine receives 2.3% of its GDP from gas transit services, Yuriy Vitrenko, chief commercial officer for Naftogaz Ukrainy, told delegates at the Ukrainian Energy Forum in Kiev on Wednesday.

15 million cubic meters of gas a day, Nasalyk said, adding that his ministry had also asked local authorities to close schools and universities until March 6.

In this regard, Ukrainian President Petro Poroshenko has indicated that Kiev will want to seize Gazprom's assets if the Russian side fails to comply with Stockholm arbitration. What is unclear is how the transit deal will be affected by the row: Gazprom delivers some 80% of the approximately 110bcm of gas it sends to its Western European customers via the ironically named Druzhba, or "Friendship", pipeline that runs across Ukraine.

Other reports by My Hot News

Discuss This Article