Today, the Tribunal at the Arbitration Institute of the Stockholm Chamber of Commerce has completely rejected Gazprom take-or-pay claims to Naftogaz amounting to USD 56 billion for 2009-2017.
Naftogaz succeeded at reducing future contract volume obligations by more than 10 times and made them relevant to its actual import needs.
Price for gas off-taken by Naftogaz in 2Q 2014 reduced 27% from USD 485/tcm to USD 352/tcm.
Naftogaz saved USD 1.8 billion on gas purchased in 2014-2015 due to revision of the contract price.
Destination clause and other discriminatory provisions were declared invalid to bring the contract in line with current European market standards.
Naftogaz estimates the total positive financial effect of the arbitration over the lifetime of the supply contract at over USD 75 billion.
Naftogaz claims up to USD 16 billion in transit contract arbitration against Gazprom; decision expected on 28 February 2018.