A complete knockout. Which means the victory of “Naftogaz of Ukraine” on the Russian “Gazprom”

February 28 was a historic victory in the gas dispute between Ukraine and Russia. All final decisions of the Stockholm arbitration to “Gazprom” to pay “Naftogaz of Ukraine” of 2.56 billion U.S. dollars.


In June 2014, Naftogaz filed a lawsuit against Gazprom to the Arbitration Institute at the chamber of Commerce of Stockholm. In addition to the revision of prices for Russian fuel, which rose sharply from the second quarter of 2014 more than a third to $ 485 per thousand cubic meters, the statement of claim “Naftogaz” demanded Gazprom to return $ 6 billion that the Ukrainian company has overpaid since 2010. Ukraine would like to see in terms of overall gas contract with “Gazprom” from 2009. The other complaint concerned the transit contract – Russia delivered via Ukraine to Europe less than was recorded in the contract. This complaint Ukraine has demanded from Russia to pay $ 16 billion. In General, the amount of claims of Ukraine to Russia two claims over the years has grown to 44.3 billion dollars.

The General claims of Moscow to the end, was in the amount of 81.4 billion. Gazprom demanded that Naftogaz pay for the shortage in Ukraine of contractual gas volumes in 2012, as well as for underpayment, in the opinion of the Russian Federation, for the supply of “blue fuel” in 2014.


22 December 2017, the Stockholm arbitration court issued a final decision on the dispute of Ukraine and Russia on the 2009 contract for the purchase of gas, valid until the end of 2019. If Kiev won all disputes.

In particular, the arbitral Tribunal fully dismissed the claims of “Gazprom” for the position of “take or pay” in the amount of $ 56 billion over the 2009-2017 years. This provision is spelled out in the contract and demanded from Ukraine to pay even for the amount of gas that she bought in Russia.

“Naftogaz” also has achieved a reduction of future required annual volume of more than 10 times according to its actual needs to import gas from 52 billion cubic meters to 5 billion cubic meters.

The price of gas from “Naftogaz” in the second quarter of 2014, decreased 27% from $ 485 per thousand cubic meters to 352 dollars. Due to the revision of the contract price, “Naftogaz” has saved $ 1.8 billion on gas purchased in 2014-2015.

The arbitration invalidated the onerous provisions of the contract, bringing them to European market standards.

It was also decided that all the gas that Gazprom supplies to the illegally occupied territory of Luhansk and Donetsk regions, “Naftogaz of Ukraine” should not pay.

“Naftogaz” has estimated the total positive effect of these decisions in arbitration more than 75 billion dollars over the entire term of the contract for the supply of Russian gas.

In “Gazprom” then said they do not intend to appeal the decision of the Stockholm arbitration on the dispute between “Naftogaz of Ukraine”.

“There is nothing new. The arbitration decision entered into force. To appeal? Why?” – said the Deputy Chairman of the Board “Gazprom” Alexander Medvedev.

Naftogaz Of Ukraine


28 February 2018 the Stockholm arbitration court declared the decision on another dispute “Naftogaz” and “Gazprom”.

According to the transit contract, which was concluded in 2009, “Gazprom” had to be transported through Ukraine 110 billion cubic meters per year. As this condition was not fulfilled, “Naftogaz” in the end, demanded to collect from the Russian company $ 16 billion.

Also “Naftogaz of Ukraine” wanted to change the number of significant terms of the agreement with Russian “Gazprom” for gas transit through the territory of Ukraine. In particular, the tariffs for transportation. Secondly, about the possibility for Naftogaz to transfer the contract for gas transit to the new operator, i.e. complete the process of separating the transmission system from the group of “Naftogaz”. “Gazprom” refused to do it. Ukraine also hoped to unlock the virtual gas flows. This will allow “Naftogaz” to “freely dispose of the gas which passes through the territory of Ukraine, without asking permission from “Gazprom”, said the head of “Naftogaz” Andrey Kobelev.

At the same time, according to KOBOLEV, if the arbitration would not allow “Naftogaz” to change the counterparty to enter into a contract with “Gazprom” the new operator of the gas transportation system, it will complicate the process of attracting European operator to manage the Ukrainian GTS.

On 28 February it became known that the Tribunal has decided to pay “Naftogaz” 4.63 billion dollars for failure to supply Gazprom agreed amounts of gas for transit. The Tribunal also dismissed the claims of “Gazprom” on fines for allegedly illegally sampled “Naftogaz” volumes of transit of gas.

The court did not support the requirement of “Naftogaz” on the revision of the tariff for transit because the application for viewing, presented by “Naftogaz” in 2009, did not meet procedural requirements. The court also granted the request of “Naftogaz” to revise the transit contract, in accordance with European and Ukrainian energy and competition law, noting that the introduction of the regulatory reform in Ukraine is the Ukrainian authorities and is not within the competence of the Tribunal in this case.

“Now we need to reconsider the transit contract, taking into account the arbitral award and the requirements of the European and Ukrainian legislation. “Naftogaz” intends to soon offer” Gazprom “to begin negotiations on this issue. “Naftogaz” expects that after the arbitration decision on the reform of gas market in Ukraine will be accelerated,” – said KOBOLEV.

Granted if the other requirements for arbitration of Ukraine is still unknown.

“I went to read the decision. More than a thousand pages,” he wrote in Facebook the head of “Naftogaz” Andrey Kobelev.


According to the results of two arbitration proceedings in Stockholm “Gazprom” should pay of 2.56 billion U.S. dollars in favor of “Naftogaz of Ukraine”.

“This money should be directed to increase gas production in Ukraine and to invest in energy efficiency at the level of Ukrainian consumers. Such steps will enhance the security of supply and to ensure that the Ukrainian affordable energy,” – said Kobolyev.

Assessment of the financial effect of all primary and counterclaims of the parties in both cases, which is 125 billion dollars, this dispute is the largest ever commercial arbitration, according to “Naftogaz”.

Naftogaz Of Ukraine

Naftogaz Of Ukraine


  • gas
  • Gazprom
  • arbitration
  • Naftogaz
  • transit

Next post

Saw a bug — Ctrl+Enter

Letter to the editor

© Materials

Naftogaz Of Ukraine
Facebook / Andrew KOBOLEV

/ OL

Leave your comment

Leave your comment

All comments


Editor’s choice