20:48 11.03.2024

Naftogaz awaiting intl arbitration decision on Gazprom's underpayment for transit in early 2026 - CEO

2 min read

NJSC Naftogaz Ukrainy expects a decision by international arbitration on a claim against Russia's Gazprom for incomplete payment for services for organizing the transportation of natural gas in early 2026, said head of the company’s board Oleksiy Chernyshov.

“Today, our claim is $800 million. By the end of the year, we will increase it to almost $1.4 billion. We expect a decision at the beginning of 2026,” he said in an interview with Forbes Ukraine.

According to him, the Russian company is currently paying 2/3 of the fixed amount stipulated in the contract - about $800 million out of $1.2 billion per year.

“At the same time, Naftogaz is contractually obligated to reserve the entire capacity of the Ukrainian gas transportation system. Therefore, we are now receiving less than what we pay to the GTS Operator,” Chernyshov noted.

The head of Naftogaz again emphasized that the company does not intend to extend or enter into a new transit contract with Gazprom upon completion of the current one on December 31, 2024.

“Until the end of 2024, we continue to fulfill the contract with one goal: to provide our European partners with a stable supply of energy. After completion of the contract, we do not intend to either extend it or enter into any new contracts with the Russian Federation,” he said.

The CEO also said that the search and recovery from Russia of $5 billion in compensation for damage caused to the group as a result of the illegal seizure of its assets in the Autonomous Republic of Crimea in 2014 would take years, but announced the first results of recognizing the decision of the Arbitration Tribunal at the Permanent Court of Arbitration in The Hague and in other countries following the USA and Great Britain.