Gazprom Submits Cassation Appeal Against Court's Ruling Obliging It To Pay UAH 172 Billion Of Fine To Antimonopoly Committee

The Gazprom company (the Russian Federation) has submitted to the Higher Economic Court of Ukraine a cassation appeal against the decision issued by the Economic Court of Kyiv dated December 5, 2016 by which it upheld the decision provided by the Antimonopoly Committee of Ukraine to oblige Gazprom, the Russian gas monopoly, to pay it a total of UAH 172 billion (approximately USD 6.4 billion under the current exchange rate) of compensation and penalties for monopoly abuse in the market of natural gas transit through the territory of Ukraine.

The Ukrainian News Agency has learnt this from data posted on the court's website.

The materials of the case have not been yet transferred to the Higher Economic Court and the hearing date has not yet been scheduled.

As Ukrainian News Agency earlier reported, on January 22, the Antimonopoly Committee fined Gazprom in the amount of UAH 85.966 billion over the monopoly abuse in the gas transit market.

The notice obliging Gazprom to pay the fine was sent on March 4, 2016, meaning the company should have paid the penalty before May 4, 2016.

On April 12, 2016, Gazprom filed a motion to the Economic Court of Kyiv seeking overruling the Antimonopoly Committee's decision, but the court refused to accept the motion.

Gazprom tried to appeal against the ruling of the Economic Court of Kyiv on dismissal of its motion without consideration, but the courts of higher instance upheld the ruling.

On October 5, 2016, the Antimonopoly Committee filed a suit to the Economic Court of Kyiv requesting to enforce collection of fine and penalties (in the same amount).

The Ministry of Energy of Russia, on December 9, 2016, expressed concern over the penalty-imposing decision issued by the Economic Court of Kyiv and claimed that the penalties pose risks and raise questions as for the reliability and stability of transit of Russian gas through the territory of Ukraine.

Russian Ministry of Energy called for Ukraine to abolish the decision.

Minister of Energy and Coal Industry of Ukraine Ihor Nasalik considers that expropriation of transit gas as the possible means of enforcement of the court's decision would be impossible.

Nasalik also confirmed that Prime Minister Volodymyr Groysman guaranteed to the European Commission that the transit gas would not be arrested by the decision of court.

The Antimonopoly Committee studies possibilities to collect penalties from Gazprom in foreign jurisdictions.

The decision requiring to pay penalties came into force on February 22.