The Gazprom gas company (Russia) has stopped billing the Naftogaz of Ukraine national energy company for the natural gas it supplied to the non-government-controlled areas of Donetsk and Luhansk regions.
Naftogaz of Ukraine's Chief Commercial Officer Yurii Vitrenko announced this to reporters at the Adam Smith Institute's Ukrainian Energy Forum, the Ukrainian News Agency reports.
"Yes, I confirm that it has stopped," he said.
Naftogaz of Ukraine recently said that it would not pay for the gas that Gazprom supplied to the non-government-controlled territories in Donbas in accordance with a decision by the Arbitration Institute of the Stockholm Chamber of Commerce (Sweden).
As Ukrainian News Agency earlier reported, the Arbitration Institute of the Stockholm Chamber of Commerce has reduced the price as which Gazprom supplies gas to Naftogaz of Ukraine in the second quarter of 2014 by 27% from USD 485 per thousand cubic meters to USD 352 per thousand cubic meters.
The Arbitration Institute of the Stockholm Chamber of Commerce has postponed the deadline for a decision on the dispute between Naftogaz of Ukraine and Gazprom over the contract for transit of natural gas to February 28, 2018.
In the dispute over the contract for transit of natural gas, Naftogaz of Ukraine is demanding, among other things, that the contract should be brought into compliance with European and Ukrainian energy legislation, that the transit tariff should be to revised (including retrospective revision) in accordance with European tariff conditions, and that it should be paid compensation for its loss of income from gas transit.
Naftogaz of Ukraine is claiming an estimated USD 6.5-16 billion from Gazprom in the dispute over the gas transit contract.
The Arbitration Institute of the Stockholm Chamber of Commerce ruled against Gazprom in the dispute over the "take or pay" clause in its gas contract with Naftogaz of Ukraine on May 31, 2017, and established the principle for revision of this clause in the future.
In addition, the Arbitration Institute recognized Naftogaz of Ukraine's right to revise the contractual price to bring it in line with European market prices (at a specific hub) from April 2014. It also canceled the contract's clause that bans Naftogaz of Ukraine from re-exporting gas purchased from Gazprom.
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