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CEZ takes Gazprom to court over lost

gas supply

RUSSIA CZECH energy company CEZ has sued Rus- mostly with piped supply from alternative
sian state gas supplier Gazprom for $45mn sources as well as LNG.
A number of other for failing to deliver enough gas, local media CEZ uses gas to generate electricity, and it is
buyers have similarly reported on February 9. also a major gas supplier to households in the
taken Gazprom to court The court case relates to the undersupply Czech Republic.
over lost gas supply in of gas last year, a company spokesperson was As Russia has ratified the New York Conven-
the last year. reported as saying by newspaper Idnes. tion on international arbitration, “Gazprom’s
“The decision on arbitration procedures to assets in foreign countries can potentially be
take place in Geneva will be made by an arbi- seized,” Petr Tomasek, of the Faculty of Law
tration court of three people,” the newspaper of Charles University, told the Czech News
reported. There is a chance that CEZ could Agency. “However, such a possibility is rather
receive compensation if it manages to prove unlikely for assets located in Russia.”
that Gazprom did not comply with its supply Gazprom may be able to argue that it was
contract. impossible to honour the supply contract
The Czech Republic received practically with CEZ because of EU sanctions or another
all of its gas from Russia prior to the war in “greater force,” such as gas pipeline explosions,
Ukraine. But as of now, it now receives only Tomasek added. Gazprom’s Nord Stream 1 and
3-4% of its needs from Gazprom, which cut 2 pipelines were partially destroyed in late Sep-
supply to a number of European customers tember as a result of suspected sabotage.
last year as a result of disruptions at the Nord According to CEZ, gas deliveries were unsta-
Stream pipelines and a Kremlin decree that ble even before EU sanctions were imposed.
required buyers to pay in rubles instead of Gazprom is facing similar arbitration cases
the currencies stipulated in their contracts. with European buyers including Germany’s
The Czech Republic has replaced Russian gas Uniper and EU. ™

P14 www. NEWSBASE .com Week 07 16•February•2023