Ukrtransnafta and Transneft (Russia) have transferred the jurisdiction of hearing disputes over the oil transit contract from Russia to Singapore as Interfax-Ukraine reported citing Director General of Ukrtransnafta Mykola Havrylenko.
"Singapore has been chosen as one of the neutral centers with logic similar to English law," he said.
According to him, the additional agreement to the contract for the transit of oil through the territory of Ukraine signed by the companies early December will allow the parties to more clearly interpret those clauses of the contract that are required for stable and long-term work.
"Legally, this is an additional agreement to the contract, but the level of additions looks like a new contract, because the number of changes that have been made is probably the largest for the entire period of the contract. There is nothing revolutionary, but there are touches that allow us to more clearly interpret those clauses of the contract that are required for stable and long-term work," Havrylenko said.
As we reported, Ukrtransnafta and Russian Transneft concluded the supplementary agreement to the treaty on the oil transit through Ukraine’s territory, which extends its action for 10 years – from January 1, 2020, until January 1, 2030.