Today, Naftogaz submitted a claim for revision of the tariff in its transit contract with Gazprom to arbitration in Stockholm. The transit contract between Naftogaz and Gazprom allows the parties to request a revision of the tariff in case of significant changes in the European gas market and if the tariff does not correspond to the level of tariffs in Europe. In the Award rendered by a Stockholm tribunal on 28 February 2018, Naftogaz's claim for tariff revision was rejected for procedural reasons, and Naftogaz's substantive right to a revision of the tariff was therefore not decided in that Award. Naftogaz submitted a request for revision of the tariff to Gazprom in March 2018, triggering negotiations pursuant to the contract. The reasons for the request are significant changes in the European gas market, in particular the rules for setting transit tariffs, after the contract was concluded in January 2009, and the fact that the tariff level does not correspond to the European level. Gazprom has not been constructive in the negotiations, compelling Naftogaz to refer the matter to arbitration as provided for in the contract. Naftogaz requests a revision of the tariff with effect from March 2018, and has preliminarily estimated the monetary value of the claim at USD 11.58 billion, excluding interest.
NJSC Naftogaz of Ukraine