The President of Ukraine Petro Poroshenko explained why the victory of “Naftogaz” in the Stockholm Tribunal important for Ukraine. The President wrote on his page in Facebook.
“Just the Chairman “Naftogaz of Ukraine” Andrey KOBOLEV informed me that “Naftogaz” has won the largest commercial dispute,” wrote the President.
Poroshenko noted that the situation of a contract with Russia’s Gazprom take-or-pay was cancelled.
“To meet the requirements of Russian Gazprom to pay for gas on the basis of “take or pay” is denied. This principle, imposed on Ukraine by Russia irresponsible and adopted by Ukrainian negotiators in 2009. Thanks to him, millions of Ukrainians were robbed of billions of dollars”, – said Poroshenko.
The decision of the Tribunal, told the President, also entitles Naftogaz to demand reduction of the price of gas contract with Gazprom at market conditions.
“Thus, the cost of gas will be determined not by the Kremlin, but only transparent and free market. This is an important step towards energy security. Time loses the ability to use gas as a weapon of political pressure and blackmail,” commented the item Poroshenko.
Ukraine is a very important decision, the President said, as the controversy between “Naftogaz” and “Gazprom” for the first time have been settled “in a civilized legal way.”
“Confirm that Ukraine is a reliable partner in the issue of gas supply to European consumers”, – said Poroshenko.
However, in “Gazprom” it was limited to a discreet review about the decision of the Stockholm Tribunal, referring to the large volume of the document.
We will remind, the Deputy foreign Minister of Ukraine Olena zerkal said that the decision of the Tribunal “a clear victory” of Ukraine.
According to her, the position of the Tribunal on the key issues was this:
- the condition “take or pay” cancelled completely (“the lion’s share of the financial requirements of Gazprom,” – said zerkal);
- the prohibition of re-export is cancelled in full;
- the price formula revised in 2014 – the “European hub”.
She noted that the interest of Ukraine in this case is to supply gas to Ukraine based on European principles and rules of functioning of the gas market, “as required by national law, the provisions of the Treaty establishing the Energy community and the Association Agreement between Ukraine and the EU.”
“The only company that aggressively opposes this – “Gazprom”. Since under such circumstances to amend the contract by negotiation was impossible,” – said zerkal.
In the summer of 2014, Naftogaz and Gazprom have filed against each other claims to the Arbitration Institute of Stockholm chamber of Commerce. Both complaints concerned the contract of purchase and sale of gas, which was concluded in 2009.
Naftogaz urged the court to recognize the principle of “take-or-pay” is not applicable in the world practice; also, the Ukrainian side believes is not a market contract formula for determining gas prices. Also, “Naftogaz” demanded the return of 17,87 billion for gas purchased since may 20, 2011 to October 2015.
Gazprom, in turn, urges Naftogaz to follow the contract and pay all recorded in the volumes of gas and to pay fines – in the amount by 45.78 billion.
In October 2014, Naftogaz additionally filed a complaint under the transit contract, which was signed in the same year 2009. In this case, “Naftogaz” expects to collect from the Russian company of 12.09 billion. “Gazprom” demands of 6.64 billion.
The total amount of claims has already exceeded 80 billion dollars.