No settlement agreement can be reached with Gazprom on existing Stockholm Arbitration rulings, Naftohaz CCO Vitrenko says

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No settlement agreement can be reached with Gazprom on existing Stockholm Arbitration rulings, Naftohaz CCO Vitrenko says

Commercial Director of Naftohaz Ukrainy Yurii Vitrenko said that the amicable agreement between Ukraine’s oil and gas company and Russian Gazprom can be reached only on the lawsuits recently filed to the Stockholm tribunal providing that the Russian gas monopoly makes an extra-judicial payment of over $12 billion.

"As we informed Gazprom at the tripartite meeting, no settlement agreement can be reached on the rulings that have already been made by the arbitration court," Naftohaz top executive wrote on social media, Censor.NET reports.

Vitrenko explained that besides arbitration cases in which rulings have already been made, Naftohaz and Gazprom have new arbitration disputes: the Russian company seeks to terminate or amend the current contracts while Naftohaz claims compensation for losses caused by Gazprom’s failure "to fulfill its contractual obligations taking into account the arbitration court ruling."

According to Naftohaz CCO, Gazprom refuses to supply gas, revise the transit tariff, and also violates its obligations to maintain certain pressure in Ukraine’s gas transportation system.

"The compensation that we claim from Gazprom under the new arbitrations is already in excess of $12 billion. Our claims are justified. We are confident in our legal position. If Gazprom wants to reach an amicable agreement on these new arbitration claims, it can pay us out this compensation extra-judicially," Vitrenko said.

Russian President Vladimir Putin earlier said that the Russian Federation would extend the contract for the transit of Russian gas to the EU through Ukraine if the dispute between Gazprom and Naftohaz was resolved in the Stockholm Arbitration Court.

Naftohaz believes two disputes with Gazprom have already been settled and the relevant rulings have already been made by the Stockholm Tribunal.

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.