The Stockholm Court of Arbitration on Wednesday made a decision in the natural gas supply contract dispute between Ukrainian incumbent Naftogaz and Russian producer Gazprom, Naftogaz has said.
The court has fully cancelled Gazprom’s take-or-pay requirement and made a positive decision regarding Naftogaz’s price review demands taking into consideration market conditions. The decision also annulled the destination clause, Naftogaz said. No further details were disclosed with Naftogaz saying it is studying the test of the decision.
The dispute concerns the two companies’ 10-year supply contract signed in 2009. In January, Gazprom sent an invoice to Naftogaz on requesting $5.3bn for gas volumes which the Ukrainian company did not lift in the last three quarters of 2016 referring to the take-or-pay clause included in the contract. Naftogaz stopped buying gas from Gazprom in November 2015 and switched completely to imports from the EU.
The Stockholm court is also reviewing the two companies transit agreement in a separate case. The decision in both lawsuits will affect Ukraine’s role in transit of Russian gas to Europe after 2019.
Gazprom had not commented on the outcome of the case by 17:20 London time. email@example.com