Today, October 9, 2017, in the Stockholm arbitration court begin hearings on the dispute between Naftogaz and Gazprom. About this in Facebook wrote commercial Director at Naftogaz Yury Vitrenko.

“As Naftogaz and Gazprom failed to reach agreement on the implementation of individual decisions (Separate Award), adopted by the court of arbitration in June this year, now the court must consider the parties’ positions and to take appropriate decisions,” wrote Vitrenko.

He recalled that in his separate judgment, arbitration:

a) fully and finally rejected Gazprom’s claims for payment of Naftogaz amounts charged by Gazprom in accordance with the contract clause “take or pay”;

b) set the principle that this provision should be changed in the future;

C) recognized the right of Naftogaz on the revision of the contract price and bringing it to the level of prices in the European market from April 2014, and also receive from Gazprom for compensation for overpayment.

The parties have negotiated to try to negotiate changes in the contract that allowed particular:

1) to implement in the future (from the date of the new decision of the arbitration until the contract expires in 2019) determined by the arbitrage principle in relation to the position of “take or pay”;

2) select the specific type of contract determined by the arbitration of the gas hub, which is to do the indexing (reference) in the pricing formula (instead of oil), and recalculate a new price (lower than the old prices) from April 2014 (to determine the difference between how much Naftogaz paid and how much should he pay at the new price).

“To pay anything on the claim of Gazprom’s “take or pay” we certainly don’t need is the final (albeit “private”) arbitration decisions. Let me remind you, the claims of Gazprom on this item exceeded $40 billion and has increased every day. So here everything is good for us,” – said Vitrenko.

Read also: Gazprom vs. Naftogaz. Which means the arbitration decision in Stockholm

He also added that the deadline for the adoption of decisions of arbitration as a contract for the purchase and sale of gas and for gas transit contract – end of November 2017

“The contract for gas transit in particular, we desired to bring the contract into line with European and Ukrainian energy legislation to revise (including retrospectively) rate in accordance with the European conditions of tariff, as well as compensation for lost revenue from transit. We are talking about compensation from several billion dollars to an amount greatly exceeding $10 billion (each day the amount is increased by the lost revenue during this period),” – said Vitrenko.

In Stockholm began hearings on the dispute of Naftogaz and Gazprom 09.10.2017

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