Ukrainian court affirmed the Stockholm arbitration award in the dispute of “RosUkrEnergo” and “Naftogaz”

Aug 19 2010

The Shevchenkovskii district court recognized that NJSC "Naftogaz of Ukraine" broke the contract and must give back 12,1 billion cubic meters of gaz to "RosUkrEnergo" till September 1 or some other period agreed by the Parties.

Now the similar gas volume costs about $3 billion. If the trader receives gas it will be able to recover its business in Europe that was totally lost after the Russian-Ukrainian gas conflict of the beginning of 2009.

The court considered the claims of "RosUkrEnergo" to NJSC, according to which on June 8 the Stockholm arbitration took the trader's side. "The Tribunal resolved that "Naftogaz" had broken the contract deprived "RosUkrEnergo" of the access to 11 billion cubic meters of natural gas that belong to the last one", it is said in the document. It is also said that "Naftogaz" must return $184 million to "RosUkrEnergo". In such a way the Ukrainian court affirmed the international arbitration verdict that was necessary for the enforcement of the award in Ukraine.

It was reported earlier, the Ministry of Fuel and Energy of Ukraine offered "RosUkrEnergo" to sell 12,1 billion cubic meters of gas, that the company must receive by the award of the Stockholm arbitration court, at the inner market. At the Ministry it is expected that "RosUkrEnergo" will agree with the offer because it does not have the possibility to export gas in Poland and Hungary.