The Stockholm arbitration tribunal rejected the claims of Russia's Gazprom against Naftogaz of Ukraine

The claims of Gazprom against Naftogaz of Ukraine regarding the take-or-pay condition were completely abolished, as reported to Interfax-Ukraine by the press service of the Ukrainian state-owned holding company citing the head of Naftogaz, Andriy Kobolyev.

The press service also reported that the arbitral tribunal under the auspices of the Arbitration Institute of the Stockholm Chamber of Commerce satisfied the demand of Naftogaz of Ukraine concerning the price revision in the contract for gas supplies with Gazprom taking into account market conditions.

On May 31st the Ukrainian holding company received a separate decision by the Stockholm tribunal in the case against Gazprom regarding the gas supply contract. Previously, Naftogaz noted that the calculation of satisfied claims will be determined later when the tribunal makes a final decision. In this case, a separate decision is final and binding for all the parties.

Counterclaims by Naftogaz and Gazprom regarding the gas supply contract were submitted to arbitration in June 2014 and oral hearings were completed in October 2016. As of the beginning of April 2017, the mutual claims by Gazprom and Naftogaz under the gas purchase and sale contract, taking into account fines and interest, amounted to about $45.7 billion and $17.9 billion, respectively.

Naftogaz's financial claims under the contract include a refund for the overpayment for gas ($17.9 billion), and Gazprom's claims request payment for unpaid bills due to the disputed price during November 2013 - May 2014 ($2.9 billion) and payment for non-purchased gas according to the take-or-pay contract obligations ($42.8 billion).

Without taking into account fines and interest, Gazprom's claims as of the end of May 2017 amount to $34.5 billion for undelivered gas according to the take-or-pay condition and $2.2 billion for the disputed price in the fourth quarter of 2013 and the second quarter of 2014, and the claims of Naftogaz amount to $14.1 billion for the overpayment for gas, purchased from May 20, 2011 to October 2015.

  Naftogaz, Gazprom

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