Friday, March 02, 2018

Gazprom terminates gas supply contract with Ukraine’s Naftogaz

Gazprom terminates gas supply contract with Ukraine’s Naftogaz
Russia’s Gazprom announced on Friday it has been forced to immediately break its contract with Ukraine’s Naftogaz for the supply and transit of natural gas.

The decision concludes a three-year dispute between the two companies. The announcement followed the verdict of the Stockholm Arbitration Court which heard the dispute. This week the court ordered Naftogaz to pay Gazprom $2 billion, while ordering the Russian company to compensate Naftogaz to the tune of $4,673 billion.

Head of Gazprom Alexei Miller as cited by RIA Novosti, said that the court “made an asymmetric decision,” violating the balance of the parties’ interests.

“The arbitrators justified their decision by the sharp deterioration in the Ukrainian economy. We are categorically against Ukraine’s economic problems being solved at our expense,” Miller said.

He added that at the present time, the Russian side considers the extension of contracts economically unviable.

On Thursday, Gazprom’s deputy chairman Alexander Medvedev told journalists the company won’t send shipments of natural gas to Ukraine’s Naftogaz as of March 1 after the sides failed to reach an agreement.


No comments:

Post a Comment

Only News

EL News

Blog Widget by LinkWithin