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Settlement of issues ruled by Stockholm court with Gazprom is impossible – Naftogaz-Ukraine

Gazprom was also ordered to pay the Ukrainian company $2.56 billion.
20:31, 21 July 2018

 

112 Agency

Vitrenko claims that Naftogaz-Ukraine will continue the enforced recovery through the arrest of Gazprom’s assets around the world, unless the company is fully compensated by the Russian monopolist, Interfax-Ukraine reports.

A settlement between Naftogaz-Ukraine and Gazprom is only possible in regards to the lawsuits recently filed to the Stockholm Court of Arbitration, and the condition for that is an out-of-court payment of over $12 billion by the Russian company. The Chief Commercial Officer of NAK Naftogaz-Ukraine YuriyVitrenko wrote so on his Facebook page, Interfax-Ukraine reports.

"As we told Gazprom during our trilateral meeting, a settlement in regards to the rulings already produced by the court is impossible",- he wrote.

 

Related: Fields for Naftogaz, gas stations for Privat: How Ukrnafta is going to pay back its debt

Vitrenko pointed out that apart from the arbitrary procedures on which rulings have already been producer, NAK Naftogaz-Ukraine has new arbitrary procedures against Gazprom: the Russian company demands the present agreements to be altered or annulled, whereas Naftogaz is asking for a compensation of losses incurred as the result of Gazprom’s non-fulfillment of its contractual obligations, including that taking the ruling into consideration.

The Chief Commercial Officer of NAK Naftogaz-Ukraine explained that Gazprom refuses to supply gas and to revise the transit tariff, as well as it violates its obligations regardng the support of the required pressure in the gas transport system at the entrance to Ukraine.

Related: Ukraine’s Naftogaz is ready to settle new dispute with Gazprom

“The amount of the compensation we are demanding from Gazprom in the new arbitrary proceedings, is already over $12 billion. Our demands are substantiated, we are confident about our legal strategy and position. If Gazprom wants “truce” on the new arbitrary procedures, it may be settled out of court”, - Vitrenko said.

The Naftogaz executive also underlined that the company’s position is based on the fact that the procedure cannot delay the trilateral negotiations regarding gas transit through Ukraine after 2019.

“If there is anyone who wants to delay these negotiations superficially, then so should be the construction of Nord Stream-2 be postponed, as it is a political, anti-competitive project”, - the representative claimed.

Vitrenko, while commenting again on the Russian party’s offer of a truce on the rulings already made, arguing that it would contradict the essence of such deals – they need to be agreed upon before the final ruling is made.

Related: Naftogaz-Gazprom dispute: Ukraine turns to Swedish Appeal Court

“Now is too late to ask for a “truce” in those lawsuits. Gazprom needs to pay us $2.56 billion, according to the court’s ruling, as well as $75 million worth of interest. We also expect to be compensated for the expenses incurred as part of the forced recovery”, - the Chief Financial Officer of Naftogaz-Ukraine stated.

Vitrenko also promises to continue the forced recovery through arresting Gazprom’s assets worldwide until the Ukrainian company receives the money. NAK Naftogaz-Ukraine also point out that there is nothing overruling or stopping the execution of the court ruling, while the Swedish court of appeals has temporarily halted the forced recovery exclusively throughout Sweden’s territory. “We expect the restriction to be lifted soon”, - an executive at Naftogaz-Ukraine said.

According to the source, Gazprom is fully aware of the risks associated with non-compliance with the ruling of the court, and this is why the company pleaded to stop the arrest of its assets at the trilateral meeting. The plea was met with a negative answer from the Ukrainian party.

On 28 February, the Stockholm court of arbtration ruled Gazprom to pay Naftogaz a compensation to the tune of $4.63 billion for under-shipped volumes of gas transiting through Ukraine. Gazprom was also ordered to pay the Ukrainian company $2.56 billion.

In return, Gazprom has claimed it would denounce its agreements on gas supply to Ukraine. After that, Ukraine confiscated all of the Russian corporation’s assets located in Ukraine.

 

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