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Ukraine's Naftogaz counts Gazprom's $9 million of overpayment as gas transit debt

According to the decision of the court, Naftogaz got a $4,63 billion compensation for the gas transit that had been agreed on, but not delivered by Gazprom
18:12, 10 October 2018

ubr.ua

On October 10, Naftogaz Ukraine sent a statement on making overpayments for gas transit in repayment of fines, which is Russian monopolist debts according to the decision of the Arbitration Court on transit contract as of February 28, 2018, as Naftogaz press office reports.

“On December 22, 2017, Stockholm Arbitration reconsidered the price formation formula under the contract on gas supply to Ukraine reducing its price which led to decrease of cost of service rate and overall cost of services of gas transit provided by Naftogaz,” the press office informed.

Related: Gazprom owes additional $100 million to Naftogaz for non-implementation of arbitrage decision

Consistently refusing to implement the decision of Stockholm Arbitration, in 2018, Gazprom continues paying a high price for the transit, higher than Naftogaz sets. Naftogaz calculates the tariff in compliance with the decision of the Arbitration.

“Therefore, Naftogaz carried in more than $9 million overpayments for transit service, provided in August, as a payment within the enforcement of the arbitral award,” the message says.

Related: Amsterdam arrests shares of Gazprom in Blue Stream

According to the decision of the court, Naftogaz got a $4,63 billion compensation for the transit gas that had been agreed on, but not delivered by Gazprom. As a result of two arbitrations in Stockholm, Gazprom is to pay Naftogaz $2,56 billion. The court dismissed the demands of Gazprom that stated that the money hadn’t been paid as it was considered the fines for what they called unlawfully seized by Naftogaz volumes of the transit gas.

Had Naftogaz lost, it would have equaled the debt of $5,460 for each Ukraine family, the press service of the company counted. However, with this win, it would mean an additional $185 for each family. They also achieved a $0,5 billion reduction in the Gazprom’s gas price for 2018.

Related: Gazprom experiencing difficulties borrowing abroad due to assets frozen in Naftogaz lawsuit – media

Although, after the decision of the Stockholm arbitrations, against its sake, Gazprom stated on the initiation of contracts termination on the gas supply to Ukrainian Naftogaz. After that, all assets of Russia's energy monopolist Gazprom, located in Ukraine, were moved to this country's state budget.

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