Gazprom promised sanctions against Ukrainian Naftogaz

The Gazprom company does not recognize the claims of the Ukrainian company Naftogaz in international arbitration proceedings on gas transit to Europe through the Sohranivka checkpoint. It accounted for a third of deliveries through Ukraine. The company called the lawsuit of the Ukrainian company “an unfriendly step.” Gazprom promised that Russia would impose sanctions if the lawsuit was not withdrawn.

Gazprom said that “services not provided by the Ukrainian side should not and will not be paid.” “Further attempts by Naftogaz Ukrainy to seek consideration of the dispute in the IAC may lead to the fact that the Russian state authorities will have every reason to impose a sanctions regime on Naftogaz Ukrainy and include them in the sanctions list,”— reported in company.

After the imposition of sanctions, Gazprom will not be able to make financial transactions with Naftogaz, as well as fulfill obligations to the company under concluded transactions.

The Naftogaz company believes that Gazprom did not fully pay for the contracted capacities in May, although on May 11 the company stopped gas intake through the Save point. Because of this, Gazprom reduced the amount of transit fees for May, not wanting to pay for capacities that Naftogaz does not provide. The head of Naftogaz said that the company also wants to return to the lawsuit against Gazprom for $12 billion. It was withdrawn in 2020 after agreements on transit.

Naftogaz is the largest company in Ukraine. In 2004, it accounted for about 13% of Ukraine’s GDP. The enterprises of this company extract 97% of oil and gas in the country. On July 26, 2022, Naftogaz announced a default on Eurobonds. This happened because the government of Ukraine refused to agree on payments on Eurobonds.

Read more about the trial – in the material “Kommersant” “The hardships and hardships of contract litigation”.

Anastasia Larina