Ukraine attempting to enforce Stockholm court $2.6bn award on Russia’s Gazprom

Ukraine attempting to enforce Stockholm court $2.6bn award on Russia’s Gazprom
Ukraine's Naftogaz has appealed to Swiss courts to the enforce the recovery of $2.6bn debt from Russia's giant Gazprom
By bne IntelliNews May 31, 2018

Ukraine's state-owned natural gas monopoly Naftogaz has appealed Swiss courts seeking to the enforce the recovery of $2.6bn debt from Russia's giant Gazprom following the award of the Stockholm arbitration court, Naftogaz said in a statement on May 30.

A bitter conflict between Naftogaz and the Russian gas monopolist that erupted after a ruling by the Arbitration Institute of the Stockholm Chamber of Commerce, according to which Gazprom should repay to Kyiv a total of $2.6bn.

Despite the award of the Stockholm arbitration court, Gazprom refused to resume deliveries of gas to Naftogaz Ukrainy on March 1, or pay $2.6bn to Naftogaz.

At the same time, the Russian monopolist is challenging the arbitration award in Swedish courts, declaring the terms of the order to be unreasonable, and initiated a new arbitration, trying to cancel the results of the previous one. In accordance with international law, arbitral awards are enforceable in almost all countries. Gazprom's challenging these awards cannot stop their execution, Naftogaz said.

Meanwhile, Ukrainian President Petro Poroshenko said in a separate statement the same day that he has ordered that top managers of Naftogaz "the encumbrance of shares and other assets of Gazprom in European countries, in particular, Switzerland, the UK and the Netherlands was started. My clear order is that we must not stop on these three countries and do our best to ensure the arrival of awarded funds to Ukraine."

Poroshenko added that these should be assets and shares of Nord Stream and Nord Stream II, and the funds that have high liquidity that would ensure the quick enforcement of the awards.

On May 30, Gazprom confirmed that Naftogaz is attempting enforced recovery of $2.6 billion from the gas giant in Switzerland.

"However, at present Gazprom has not received any official notification in the framework of this procedure, therefore detailed commentary can only be provided after careful study of the documents after their official arrival at Gazprom," Interfax quoted Gazprom's unnamed representative as saying. "Gazprom will defend its rights in accordance with the applicable law."

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