Gazprom's refusal to supply gas is violation of contract, - Naftogaz

Source : 112 Ukraine

"Without supplying prepaid gas, Gazprom is preventing Naftogaz from fulfilling its obligations to purchase minimum contract volumes," according to Andriy Kobolev
12:32, 1 March 2018

Open source

Naftogaz of Ukraine is surprised by Gazprom's refusal to supply gas for March and regards this as a violation of the Stockholm arbitration decision. This was stated by the head of Naftogaz of Ukraine Andriy Kobolev, the correspondent of reported.

"We are surprised by Gazprom's position. The company put up a bill by the contract amended by the arbitration, the bill was paid for. We regard Gazprom's refusal to make supplies as a breach of contract and non-execution of the arbitration decision, "he said.

According to him, Ukraine buys gas, because it executes the arbitration’s decision.

"Without supplying prepaid gas, Gazprom is preventing Naftogaz from fulfilling its obligations to purchase minimum contract volumes," he said.

Kobolev stressed that for four years of buying gas from European suppliers, Ukraine had no situation when "we would have to worry if we get gas for which we paid."

"Today's statement by Gazprom is another reason for European counterparts to think about whether to rely on a counterparty who can bill you, get money and refuse to supply gas. Also, whether it is worth allowing such a counterparty to strengthen its already strong positions on their market due to the construction of the "Nord Stream 2," he summed up.

Related: Stockholm arbitration did not satisfy Naftogaz's demand to revise gas transit tariff

Earlier, Gazprom said that Naftogaz Ukrainy had made an advance payment for the resumption of Russian gas supplies from March. At the same time, Gazprom returned the money, saying that this was due to the absence of an agreed supplementary agreement to the current contract.

As it was reported earlier the Arbitration Institute of the Stockholm Chamber of Commerce has granted the lawsuit of Naftogaz as to compensation for the volumes of transit gas that had not been delivered by Gazprom.

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: Naftogaz-Ukraine announces tender on communications services in Europe worth $2.2 million

Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it

see more