Naftogaz Initiates New Arbitration Proceeding Against Gazprom Due To Underpayment Of Transit Contract

The Naftogaz of Ukraine national joint stock company has filed a Request for Arbitration with the International Court of Arbitration of the International Chamber of Commerce in Paris regarding the actions of PJSC Gazprom (Russia) due to underpayment under a contract for the transportation of Russian gas through Ukraine.

Naftogaz has said this in a statement, Ukrainian News Agency reports.

According to the report, the venue for arbitration is Zurich, Switzerland.

Naftogaz demands that Gazprom pay for the rendered service of organising natural gas transportation through the territory of Ukraine. Funds were not paid by Gazprom, neither on time nor in full.

“We will make Gazprom pay. Naftogaz also assesses the possibility of additional claims.  We will use our experience of victories over Gazprom in arbitration,” Naftogaz CEO Yurii Vitrenko commented.

As Ukrainian News Agency earlier reported, in June, gas transit through the Ukrainian gas transmission system to Europe reached a historic minimum of 1.25 billion cubic meters, down 3-fold from June 2021.

In 2021, Ukraine reduced gas transit to Europe through its gas transmission system by 25.4% to 41.6 billion cubic meters, compared to 2020.

In December 2019, the Naftogaz of Ukraine national joint stock company, GTS Operator of Ukraine and Gazprom signed an agreement on the transit of Russian gas to Europe through the territory of Ukraine since 2020.

Ukraine and Russia agreed that under the contract on gas transit for 5 years, which can be extended after 2024, the volume of transportation in 2020 will be 65 billion cubic meters of gas, and in 2021-2024 - 40 billion cubic meters of gas each year.