28 September 2022, Wednesday, 17:22 488

Naftogaz Will Continue Arbitration Against Gazprom Despite Its Threats

Редактор: Tetiana Herasimova

The Naftogaz of Ukraine National Joint Stock Company will continue arbitration against Gazprom (Russia) despite its threats.

This is stated in the message of Naftogaz, Ukrainian News Agency reports.

"PJSC Gazprom's statement, made on the evening of September 27, about the alleged imposition by Russia of sanctions against Naftogaz and the suspension of financial operations through arbitration initiated by Naftogaz, is another example of disregard for the rule of law. This statement once again proves that Gazprom is an instrument of Russia's illegal aggressive war against Ukraine. Gazprom distorts information and manipulates facts. Naftogaz referred to force majeure, which made it impossible from May to transport gas through the Sokhranovka entry point, since it is controlled by the Russian armed forces. Instead, Naftogaz proposed to transfer these transit volumes to another entry point - Sudzha - without any additional costs from the Russian side," the report said.

Thus, according to the report, Naftogaz provided the necessary services, but Gazprom refused to use them.

At the same time, contrary to Gazprom's claims, the contract does not give Gazprom the right to justify non-fulfillment of its payment obligations by force majeure circumstances, which Naftogaz noted.

"The imposition of sanctions by Sweden and Switzerland due to Russian aggression against Ukraine, obviously, does not affect either the content and application of the relevant legislation, or the impartial conduct of arbitration by independent arbitrators appointed by both parties to the dispute. Arbitration will take place regardless of Gazprom's participation in it. In accordance with the current agreement on the provision of gas transportation services concluded in 2019 between Gazprom and Naftogaz, Gazprom recognizes the right of Naftogaz to apply to arbitration in case of disputes. Currently, when Naftogaz uses this right, this is the usual implementation of contractual law, and not an ‘unfriendly act’," the report said.

As Ukrainian News Agency earlier reported, in September Naftogaz 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.

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.