The English Commercial Court bans Gazprom from reducing its assets in England and the Netherlands

On 15 March, the English Commercial Court held a hearing on the enforcement of the award rendered by the Stockholm arbitral tribunal in the transit case between Naftogaz and Gazprom in the jurisdiction of England and Wales

On 15 March, the English Commercial Court held a hearing on the enforcement of the award rendered by the Stockholm arbitral tribunal in the transit case between Naftogaz and Gazprom in the jurisdiction of England and Wales.

According to the ruling of the London court, the enforcement of the award can be adjourned until the decision of the Svea Court of Appeal if Gazprom undertakes certain obligations, in particular, withholding from hiding or reducing its assets in England and the Netherlands. Besides that, within 28 days from the satisfaction of the motion, Gazprom must deposit cash on the court’s account or into an escrow account with a London bank as security for fulfilling the court’s order.

This does not cancel Gazprom’s obligations not to hide or reduce its assets in England.

If Gazprom evades its obligations under the judgment of the English Commercial Court, the Russian company will be fined and its directors or other officers may be arraigned on criminal charges while Naftogaz will be eligible to proceed with the enforcement of the transit award in England and Wales.

In the Netherlands, action to enforce against Gazprom's assets that were attached on a precautionary basis by Naftogaz continues. The English judgment has no effect on that position.

Naftogaz applied for recognition and enforcement of the transit award before the Dutch Court of Appeal in September 2018. Gazprom elected not to defend itself against Naftogaz's application and did not appear at the oral hearing in January. A decision on that application is expected shortly.


Communications Department
NJSC Naftogaz of Ukraine



Other news