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UK court suspends case on Gazprom’s assets arrest in dispute with Naftogaz

Litigation in the United Kingdom has been suspended until completion of proceedings in the appeal instance of the Svea District Court in Stockholm

The High Court of Justice of England and Wales EPA PHOTO EPA/ADRIAN DENNIS

The High Court of Justice of England and Wales

© EPA PHOTO EPA/ADRIAN DENNIS

MOSCOW, March 21. /TASS/. The High Court of Justice of England and Wales suspended proceedings on the Stockholm Arbitration’s decision recognition and enforcement case in the dispute between Gazprom and Naftogaz of Ukraine on March 15 of this year, the Russian gas holding said on Thursday.

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"Litigation in the United Kingdom has been suspended until completion of proceedings in the appeal instance of the Svea District Court (Sweden). Gazprom will continue defending its rights," the company says.

On June 18, 2018, the UK High Court of Justice issued an order on arrest of Gazprom’s assets in England and Wales as part of the execution of the Stockholm arbitration court's ruling in the dispute with Naftogaz. The order was rescinded on September 13, 2018 against commitment of Gazprom not to divest shares of Nord Stream AG until the end of hearings in the UK court on recognition and enforcement of the decision of the Stockholm Arbitration in respect of the dispute.

On February 28, 2018, the Stockholm Arbitration court handed down a final decision on the dispute between Gazprom and Naftogaz regarding the contract on gas transit via Ukraine.

On March 29, 2018, Gazprom challenged the ruling of the Stockholm Arbitration in the Svea County Court of Appeal and demanded its partial reversal citing serious procedural violations. On May 28, 2018, Gazprom submitted an appeal to the court to fully overturn the arbitration ruling.

At the end of last May, Gazprom was informed that Naftogaz of Ukraine was taking action in Switzerland to enforce the decision of the Stockholm Arbitration in the dispute over gas transit contract.

Gazprom and Naftogaz of Ukraine plunged into a litigation over gas supplies and transit contracts with the Arbitration Institute of the Stockholm Chamber of Commerce back in 2014. Gazprom is demanding more than $37 bln from the Ukrainian company for gas under the take-or-pay clause for 2012-2016, for the payment for gas supplied in May-June 2014 and gas debts.

The two contracts signed in 2009 by Gazprom and Naftogaz on gas supplies to Ukraine and on gas transit through the country to Europe will expire at the turn of 2019.

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