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Gazprom to Sue Ukraine for $24 (!) Billion

Russian energy giant Gazprom is suing Ukraine's state gas company Naftogaz for nearly $24 billion amid a long-running gas pricing dispute between the two countries


MOSCOW, May 5 (RAPSI) - The total value of Gazprom’s claims against Ukraine has reached $23.8 billion, RIA Novosti reports Tuesday citing the Ukrainian company’s 2014 IFRS report.

The report includes data on Gazprom’s first lawsuit against Naftogaz in June 2014 for $4.5 billion in outstanding payments for gas supplied in November and December 2013, as well as April and May 2014. Also, the report states that on November 19, Gazprom filed two more claims, an $837 million claim “for delivery of natural gas in June 2014” and an $18.5 billion penalty for outstanding gas not taken in 2012 and 2013 (under a the take-or-pay contract).

<figcaption>An employee turns a valve at a gas compressor station in the village of Boyarka, outside Kiev | Photo: Gleb Garanich, Reuters</figcaption>
An employee turns a valve at a gas compressor station in the village of Boyarka, outside Kiev | Photo: Gleb Garanich, Reuters

In late April, Gazprom also published its 2014 IFRS report but it only included the June lawsuit against Naftogaz.

Prime Minister of Ukraine Arseniy Yatsenyuk announced on May 1 that the amount of claims by Naftogaz against Gazprom in the Arbitration Institute of the Stockholm Chamber of Commerce exceeded $16 billion. A Naftogaz representative also specified that the latest claim under the gas transit contract was filed on April 30.

Before the recent statement, only two lawsuits by Naftogaz against Gazprom were reported, which totaled $12.2 billion. One was filed in June 2014 and demanded a retroactive review of gas prices and then sought to collect $6 billion in overpayments from Gazprom for purchases made since May 2011. In October 2014, in another lawsuit, Naftogaz demanded a review of the gas transit contract, also retroactively, and to collect $6.2 billion for non-delivered transit gas.


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