Gazprom threatened Naftogaz that it would not be able to pay for transit to the EU at all

Naftogaz Ukrainy sued Gazprom for not paying for all contracted transit volumes. The Russian company refuses to do this, as Ukraine, of its own accord, closed one of the two reception points at the border, for which there are contractual volumes. Today, Gazprom threatened that the proceedings in unfriendly countries would lead to the fact that the Russian authorities would impose counter-sanctions and the company would stop paying altogether.

Gazprom categorically rejects all the claims of Naftogaz Ukrainy on the initiated proceedings regarding the transit of Russian gas to Europe – services not provided by the Ukrainian side should not and will not be paid. Today, Gazprom notified the Secretariat of the International Arbitration Court (IAC) of the International Chamber of Commerce and the acting head of NJSC Naftogaz of Ukraine, — says the Russian company.

Gazprom clarified that Naftogaz Ukrainy, without proper grounds, refused to fulfill its transit obligations through the GIS Sokhranivka, and the very fact of failure to provide services was recognized by a Ukrainian company.

Naftogaz Ukrainy is well aware that, under the agreement dated December 30, 2019, failure to fulfill obligations on its part means no payment even if Naftogaz Ukrainy claims a force majeure event on the territory of Ukraine, Gazprom continued. “Moreover, the said agreement, concluded in 2019 under Swedish law, determined the place for resolving disputes between the parties – Zurich in Switzerland. Thanks to the huge number of anti-Russian sanctions imposed, Sweden and Switzerland have moved into the category of countries unfriendly to the Russian Federation. Significantly changed circumstances deprive Gazprom of the fundamental right to a fair and impartial hearing, both in the arbitration itself and in state courts at the place of its holding.”

Therefore, according to Gazprom, the company considers the filing of the appeal by Naftogaz Ukrainy an unfriendly step and a continuation of the unfair behavior of the Ukrainian company, and that 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 everything grounds for imposing a sanctions regime on Naftogaz of Ukraine and including persons in the sanctions list.

“In practice, this will mean a ban on Gazprom from fulfilling obligations to sanctioned persons under completed transactions, including financial transactions,” – concluded in the Russian company.

As reported EADaily In early September, Naftogaz Ukrainy filed a petition for arbitration with the International Court of Arbitration at the International Chamber of Commerce and Industry in Paris against Gazprom.

Naftogaz demands money from Gazprom for the provided service for organizing the transportation of natural gas through the territory of Ukraine, which was not paid by them in a timely manner and in full”, — said in a statement of the national company. Chairman of the board of Naftogaz Yuriy Vitrenko promised to force Gazprom to pay.

Naftogaz Ukrainy threatened to sue back in June. Then Yury Vitrenko said that Gazprom did not pay extra for the volumes of gas transit that he had booked and which were available to him.

The essence of the claims is that the Russian company is obliged to pay for all contracted transit volumes of 109.6 million cubic meters per day, regardless of actual deliveries. This is what Gazprom used to do. However, in May, the GTS Operator of Ukraine stopped receiving gas at one of the two reception points on the border, Sohranivka, and declared force majeure on it. The operator referred to the fact that he did not control the point itself and the compressor station, and they allegedly recorded unauthorized fuel extraction.

Gazprom, in turn, did not see force majeure circumstances and insisted on continuing transit through two receiving points, since the volumes were scheduled for each of them: for Sokhranovka – 32.6 million cubic meters per day, and for Sudzha – 77 million cubic meters per day. As a result, Ukraine still does not accept applications, and the Russian company refuses to transfer volumes to Sudzha, and, as the Ukrainian side stated, it stopped paying for the volumes contracted through Sokhranivka. Monthly it is $30-$31 million.

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