Gazprom refusal to supply gas violates Stockholm Tribunal ruling

Naftogaz is surprised to learn of Gazprom’s decision not to supply gas to Ukraine in March.

Naftogaz has already provided full prepayment for deliveries in line with an invoice received from Gazprom under the terms of the supply contract amended by the Stockholm Arbitral Tribunal.

The company regards Gazprom’s refusal to supply gas as a contractual violation and non-compliance with the Tribunal’s award. Naftogaz will demand that Gazprom provides compensation for the damage caused by this violation.

“We have prepaid for Russian gas, fulfilling the award of the Stockholm Tribunal. By refusing to supply this prepaid gas, Gazprom prevents Naftogaz from fulfilling the award regarding the purchase of minimum contract volumes,” commented Naftogaz CEO Andriy Kobolyev.

According to Kobolyev, over the past four years of gas purchases from European suppliers, Naftogaz never encountered a comparable situation where the company did not receive prepaid fuel. Naftogaz calls on its European partners to draw their own conclusions regarding the reliability of a counterparty that can provide an invoice, receive payment, and then refuse to supply gas.

“In light of this arbitrary behavior, we invite our European partners to consider whether it is wise to let this counterparty strengthen its influence, which is already significant, on their market through the construction of Nord Stream 2,” Kobolyev observed.

Naftogaz.com