Naftogaz is preparing an international arbitration request

Naftogaz is preparing an international arbitration request

Ukrainian company Naftogaz and its lawyers will begin next week the final stage of preparing an international arbitration request against Gazprom to reduce the transit of natural gas through Ukraine below contracted volumes, CEO Iuriy Vitrenko said in a national marathon on Tuesday. of television.


In its statements, “Gazprom refused to negotiate in a bilateral format. Therefore, next week we will meet with our lawyers and we will complete the appropriate filing for a new arbitration. If no miracle happens before July 21, it will take us some time to prepare a call – it is a complex documentation system with the participation of a large number of lawyers and experts, and in the near future we will submit an application, “he said. Vitrenko.

The current contract assumes that the place of arbitration will be Zurich, which will consider the claim in accordance with Swedish law, he said.

As early as May, Vitrenko said that Naftogaz had started the pre-arbitration procedure due to Gazprom’s failure to comply, according to the Ukrainian company, with the “transport or payment” condition under the natural gas transit contract. Gazprom’s breach of contractual obligations, as the head of Naftogaz claimed, entails a breach of the settlement agreement, under which Naftogaz waived claims in the $ 12.2 billion arbitration that began in 2018.

In his view, “If he does not honor the obligation to ‘transport or pay’, then he is in breach not only of the transit arrangement contract but also of the settlement agreement. That is, this is an arbitration not only for the amount paid insufficiently, but also for 12.2 billion dollars, for which we gave up the arbitration “, said Vitrenko.

It was declared a force majeure in May this year

The operator of the Ukrainian gas transmission system (GTSOU) declared force majeure in May regarding the acceptance of gas for transit through the Sokhranivka gas measuring station, citing the fact that it cannot control the Novopskov compressor station. He suggested that Gazprom redirect transit to GMS Sudzha.

In this context, Gazprom considers that there are no reasons for force majeure or obstacles to the continuation of operations as usual. Thus, “Ukrainian specialists have worked smoothly at Sokhranivka and Novopskov stations all this time and continue to do so; transit through Sokhranivka has been fully secured and there have been and are no complaints from counterparts, ”said the Russian gas giant.

Specifically, in accordance with the Ukraine-Russia-European Commission intergovernmental protocol signed on December 20, 2019, a package agreement was implemented on December 27-30, with the payment of $ 2.9 billion by Gazprom to Naftogaz, in in accordance with a ruling of the Arbitration Institute of the Stockholm Chamber of Commerce, waiving existing claims by the parties and signing a five-year transit agreement.

The agreement was signed three years ago

The agreement between Naftogaz and Gazprom for the organization of transport, the transport agreement between Naftogaz and GTSOU, as well as the interoperable agreement between GTSoU and Gazprom were signed on 30 December 2019.

The contract provides for the transit of at least 65 billion cubic meters in 2020 and 40 billion cubic meters annually in the period 2021-2024. Payment for these volumes is guaranteed even if less gas is pumped through GTS in Ukraine, writes Interfax.