In the last day of spring 2017, the Stockholm arbitration court issued a positive decision for Ukraine gas contract between “Gazprom” and “Naftogazom”.
According to the verdict, Ukraine has won on three key points: the condition “take or pay”, re-export, and gas pricing formula.
Ukrainians, including many politicians and experts, on their pages in social networks have reacted to the decision of the Stockholm arbitration, describing it as “Peremoga”.
Shares of Gazprom fell by 2%
On the day of the decision of the Stockholm arbitration to “Gazprom” has lost $ 1 billion capitalization. pic.twitter.com/OyThO6WJjN
— Nikitich (@DNikitich) 31 may 2017
Everyone noticed how Russian began to discuss the question on friendship with Ukraine?? Gazprom was so intense or what?
— BUMRUSSIA (@bigstarssssss) 31 may 2017
Yesterday the Stockholm arbitration court has announced a closed decision by mutual claims of “Gazprom” and “Naftogaza”. This decision was the first of several anticipated.
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” completely abolished;
- the prohibition of re-export is cancelled in full;
- the price formula revised in 2014 – the “European hub”.
As previously reported, the amounts that the parties must pay each other on the basis of the decision of the Stockholm arbitration, separately calculate the experts.
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.