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from oil-linked to German NCG hub plus transportation costs. Naftogaz estimates its losses at $120mn to date. Furthermore, Naftogaz has indicated that appropriate compensation could come in the form of Gazprom's shares in Nord Stream-2. Their sale on the open market could help to recompense part of the $2.6bn that Naftogaz seeks from Gazprom following the Stockholm court's decision, and, which Gazprom is currently appealing.
Swedish appeals court has revoked a previous suspension of an arbitration ruling that blocked attempts by Ukraine’s Naftogaz to seize Russian gas major's Gazprom ’s foreign assets in Europe, Reuters reported on September 13 citing the court ruling and without providing additional details. The decision could put Gazprom's assets in Europe under threat, as previously Naftogaz tried to seize Gazprom and Nord Stream 2 pipeline assets as part of the execution of the $2.6bn decision of Stockholm Arbitration in favour of Naftogaz. On February 28 the Stockholm's arbitration court ruled that Gazprom must pay Ukraine’s Naftogaz a total of $2.6bn , ending a four-year legal battle over gas supply contracts. Later, to enforce the decision Naftogaz Naftogaz's attempted to seize Gazprom's assets in the Netherlands and Switzerland. In June, however, another Swedish court put on pause the earlier ruling by Stockholm Arbitrage to award Naftogaz $2.6bn compensation for the duration of an appeal brought by Gazprom, effectively blocking any asset seizure attempts and the need for Gazprom to repay the $2.6bn award until its appeal is fully reviewed. It is this latest decision that has now been reportedly revoked.
Russia's gas giant and pipeline exports monopolist Gazprom has launched the construction of the underwater sections of the controversialNordStream2pipeline ,V edomosti dailyreportedon September 3 citing the representatives of the company. bne IntelliNews last month busted some myths related to the contentious pipeline set to increase the capacity of already existing Nord Stream connection between Russia and Germany by way of the Baltic Sea. The main objection to the pipeline is it will increase Russia’s power over Europe, whereas in reality the share of Russian gas in Europe’s supplies has fallen from over 80% two decades ago to 36% now. Reportedly, laying the pipes on the seabed will start soon off the Finish coast by Solitaire vessel controlled by Dutch contractor Allseas that will move to Russian territorial waters later this year. Previously Gazprom and its partners argued that Nord Stream 2 can bypass Denmark with no additional cost , thus removing the last obstacle to construction as Denmark was the last country to not issue the construction permit to the pipeline. "We have developed an alternative route that will not require any additional permits," the board member of Austrian OMV Manfred Leitner told the press on August 2 as cited by Vedomosti , while stressing that the cost of the project will remain at €9.5bn. Reportedly the route can pass north of Bornholm island through the Exclusive Economic Zone of Denmark, rather than through its territorial waters that require government's permission. Previously Sweden unwillingly concluded that it has no grounds to block Nord Stream in its EEZ. At the same time sanction risks still remain for Nord Stream, as a bill that mandates sanctions on the Russian Nord Stream 2 gas pipeline to Germany was introduced to the US Congress on June 18 . The summer 2017 sanction package already included the options of sanctioning pipelines . But in relief for Russian gas giant Gazprom in November the US Department of State said that the "focus of implementation" of the sanctions will not apply retroactively to export pipelines initiated before August 2017 , reportedly under intense lobbying from the EU.
84 RUSSIA Country Report October 2018 www.intellinews.com