Head of Naftogaz Kobolev Reports Ukraine’s Big Win against Gazprom

UKRAINE - In Brief 31 May 2017 by Dmytro Boyarchuk

---

Head of Naftogaz Andriy Kobolev reported positive decision of the Arbitration Institute of the Stockholm Chamber of Commerce on lawsuit of Russian Gazprom against Naftogaz. In particular, the arbiters rejected take-or-pay rule that Gazprom was insisting on. Also the court cancelled ban on re-export of gas that Ukraine purchased from Gazprom. Gas price formula was revised from 2014. On this trial Gazprom was requesting $42.8 billion payment from Naftogaz under take-or-pay rule. Naftogaz representatives do not give more details on this decision but they claim publicly this decision as an undisputable victory for Ukraine. About a month ago Andriy Kobolev and his Deputy Yuriy Vitrenko gathered experts and opinion-makers and shared views on potential decision of the Arbitration Institute. They said the decision will have many nuances and majority of them will not be shared with the public. Also they said the main issue is related to the price for gas that arbiters define as market level since it will be the key benchmark for defining who owes to whom. Unfortunately, information circulating in media does not give answer on this question. Definitely the decision is positive for Ukraine (take-or-pay was burdensome). But with more detail released there might be surprises.