Gazprom rejected Naftogaz’s demands for gas transit to Europe

MOSCOW, Sep 27 – PRIME. Gazprom rejects Naftogaz’s claims to arbitrate on the transit of Russian gas to Europe, services not rendered should not be paid, the Russian company said.

Gazprom categorically rejects all the demands of Naftogaz Ukrainy on the initiated proceedings regarding the transit of Russian gas to Europe – services not provided by the Ukrainian side should not and will not be paid,” the message on Gazprom’s Telegram channel says.

On Tuesday, Gazprom notified the Secretariat of the International Arbitration Court (IAC) of the International Chamber of Commerce and the current head of Naftogaz Ukrainy on Tuesday, it is also added there.

Gazprom recalls that Naftogaz, without proper grounds, refused to fulfill its transit obligations through the GIS Sokhranivka, and the very fact of failure to provide services was recognized by a Ukrainian company.

Naftogaz Ukrainy is well aware that, under the agreement dated December 30, 2019, default on its part means no payment even if Naftogaz Ukrainy declares a force majeure event on the territory of Ukraine,” Gazprom adds.

The position of Naftogaz, which is trying to unreasonably seek consideration in court of a dispute over payment for the transit of Russian gas to the EU, is unfriendly, its preservation may become the basis for sanctions by the Russian Federation against the Ukrainian company, which will mean a ban on Gazprom from fulfilling obligations under transactions with it, including payment, the Russian company said.

Gazprom said that on Tuesday it notified the secretariat of the International Court of Arbitration (IAC) of the International Chamber of Commerce and the current head of Naftogaz Ukrainy that it categorically rejects the claims of the Ukrainian company for initiated proceedings regarding gas transit to Europe, since services not rendered should not be paid .

Gazprom considers the filing of Naftogaz Ukrainy’s appeal as an unfriendly step and a continuation of the Ukrainian company’s bad faith behavior, and that further attempts by Naftogaz Ukrainy to seek consideration of the dispute in the IAC may lead to the fact that the Russian state authorities will have every reason to impose against the company “Naftogaz of Ukraine” of the sanctions regime and inclusion in the sanctions list of persons,” the message says in the Telegram channel of Gazprom.

“In practice, this will mean a ban on Gazprom from fulfilling its obligations to sanctioned persons under completed transactions, including financial transactions,” it adds.

Since May 11, Ukraine has stopped receiving gas for transit through the Sokhranovka gas measuring station (GIS), citing the fact that it is under the control of Russian forces (on the territory of the LPR). As a result, only one entrance remained for gas transit to Europe – the Sudzha GIS. “Gazprom” stated that the transfer of all volumes to “Sudzha” is technologically impossible, the company fulfills all obligations to European consumers, and transit services are fully paid.

At the same time, the head of Naftogaz, Yuriy Vitrenko, said in May that Gazprom did not pay the full amount for gas transit to Europe through the Ukrainian gas transportation system in June. Naftogaz believes that the company is starting a dispute with Gazprom over payments for transit, he said.

And on September 9, Naftogaz announced that it had filed a request for arbitration against Gazprom with the International Court of Arbitration at the International Chamber of Commerce in Paris demanding payment for gas transportation through Ukraine.