MAJOR: Gazprom begins termination of contracts with Ukraine’s Naftogaz

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Gazprom announces the start of procedures promised earlier yesterday towards the termination of contracts for the supply and transit of gas to Naftogaz of Ukraine.

“We began the procedure for terminating contracts with Naftogaz of Ukraine. And a new case for this claim of Gazprom’s will absolutely and specifically be considered by another body of arbitrators for the Stockholm Arbitration,” said Gazprom Deputy Chairman of the Board of Directors Alexander Medvedev , to journalists.

As reported, after the decision of the Stockholm Arbitration which failed to declare in Gazprom’s  favor in the arbitration court, Gazprom must initiate the termination of contracts with Naftogaz for the supply of gas to Ukraine and the transit of gas through its territory to Europe.

“The Stockholm arbitration, guided by double standards, adopted an asymmetric decision on our contracts with Naftogaz of Ukraine regarding supply and transit of gas. The decision seriously violates the balance of interests of the parties under these contracts. The arbitrators ground their decision by the fact that the situation with the Ukrainian economy has drastically worsened. We are totally against the situation when Ukraine’s economic problems are solved at our expense. In this situation, the continuation of the contracts’ validity is not economically feasible and unprofitable for Gazprom,” Miller said.

Two arbitration disputes between Gazprom and Naftogaz lasted for more than three years in the Stockholm Arbitration: the court for gas debts – from June 2014 to December 2017, and under the contract for transit – from October 2014 to February 2018.

The contracts for transit and delivery end less than two years (at the end of 2019).

Gazprom is totally against Ukraine’s economic problems being solved at its expense …
By its claim of dissolution, Gazprom at least seeks to stop fines for insufficient transit over the next two years and live under temporary conditions and temporary tariffs until a new arbitration award.

In the meantime, within a month, the construction of the first line of the Turkish Stream highway should be completed, through which gas will bypass Ukraine to the west of Turkey, and may also be partially distributed to neighboring European countries.

According to the latest commentary by the head of Gazprom, Alexei Miller, there are already more than 910 km of Turkish Stream gas pipeline constructed, which is 49% – about half – of the project’s route.

 

 

from Rusvesna – translated by J. Flores

 

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