27.03.18 17:09

Naftohaz says Gazprom reluctant to execute awards of Stockholm tribunal

Russia’s gas giant Gazprom refuses to abide by final and binding awards of the Arbitration Institute of the Stockholm Chamber of Commerce regarding gas supply to Ukraine and gas transit via the country

Naftohaz says Gazprom reluctant to execute awards of Stockholm tribunal

As reported by Censor.NET citing The Kyiv Post, this was said by the press service of national joint-stock company Naftohaz Ukrainy following last week's negotiations with Gazprom.

"At that meeting, Gazprom made it clear that the Russian gas monopoly refuses to resume deliveries to Ukraine as ordered by the Tribunal in the Gas Sales Case concluded last December and refused to confirm that it will pay the 2.6 billion dollars which the Tribunal ordered it to pay in the Gas Transit Case award which was rendered in February," Naftohaz said.

Both arbitration awards are final and binding on Gazprom, the company said.

Naftohaz said that "Gazprom’s sought to amend the contracts or to terminate the contracts to reverse the decisions of the Tribunal. Both positions are in direct contravention of and disregard for the decisions in the Arbitral Awards rendered by the Stockholm Tribunal. Naftohaz finds this position unacceptable and has rejected Gazprom’s proposals to this effect."

The parties agreed to have another round of negotiations in April.

On Feb. 28, 2018, Stockholm Arbitration Tribunal ruled that Naftohaz be paid $4.63 billion. Following two arbitration proceedings, Gazprom owes $2.56 billion.

Later on, Gazprom reversed Naftohaz Ukrainy the advanced payment it received for gas supplies in March. "Evidently, there will be no gas supplies to Naftohaz Ukrainy starting from March 1," Gazprom Deputy CEO Alexander Medvedev said.

CEO of the Russian gas giant Alexey Miller said March 2 that Gazprom had to immediately start the procedure for the termination of gas contracts with Naftohaz Ukrainy at the Stockholm Arbitration Institution. 

The European Commission called on Ukraine and Russia to find immediate solutions in line with the decisions of the Stockholm Arbitration Tribunal.

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