In total, Naftogaz received $5 bn in the result of the transit arbitration
Today, Naftogaz of Ukraine has received from Gazprom $2.918 bn, which includes the outstanding portion of the compensation awarded by the Stockholm Arbitral Tribunal in February 2018 and accrued interest. In total, Naftogaz received $5 bn from Gazprom in the result of the transit arbitration.
Today’s payment from Gazprom includes both USD 2.56 billion of the outstanding compensation that had been awarded earlier and interest that has accrued since 28 February 2018 when the verdict was announced.
Naftogaz welcomes Gazprom’s move to comply with the decision of the international arbitration as well as its interest in gas transmission to the EU through Ukraine.
The parties continue to negotiate conditions of further cooperation after 1 January 2020 when the current contract expires.
On 28 February 2018, the Stockholm Arbitral Tribunal found in favour of Naftogaz on most major issues in the dispute with Gazprom. The Tribunal found that Gazprom had defaulted on its obligations regarding volumes to be transited and awarded damages of USD 4.63 billion.
According to the award, Gazprom had to make payments to Naftogaz in the order of USD 2.56 billion after residual payments for gas delivered in 2014 and 2015 had been settled.
Naftogaz received the first part of the compensation – USD 2.1 billion out of the awarded USD 4.63 billion (45%) – in the form of gas that had been supplied by Gazprom in 2014. Naftogaz reflected this part of the award in its financial statements for 2017 and paid relevant taxes and dividends to the state budget of Ukraine in 2018.
NJSC Naftogaz of Ukraine