Page 13 - FSUOGM Week 37 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Uniper to sue Gazprom over lost gas

GERMANY GERMAN energy utility Uniper is considering earlier this year it was considering legal steps
claiming billions of euros in damages from Rus- against Gazprom that might include arbitration
Gazprom began sia’s Gazprom for cutting its gas supply, Reuters proceedings.
curtailing gas supply to reported on September 13. In past high-profile gas supply disputes, it
Uniper and the rest of Across Europe, energy companies have been has taken the Stockholm court years to reach a
Germany in July. left reeling from soaring purchase costs for elec- verdict.
tricity and power, but Uniper was among those Gazprom declared a force majeure on gas
hardest hit as Gazprom also reduced supplies to supplies to Uniper after cutting gas flow via
the firm after curtailing flow via the Nord Stream Nord Stream 1. The pipeline is no longer flowing
1 pipeline in July. As a result, it had to purchase any gas, with Gazprom citing technical failures
costly replacement supplies on the spot market. resulting from difficulties with repairing and
Uniper booked a $12.3bn net loss in the first maintaining equipment caused by Western sanc-
half of this year, and amid its mounting debt, the tions. But European governments, including
German government stepped in to rescue the Germany’s, have dismissed the pipeline’s closure
company in July for $15bn, marking the biggest as politically-motivated.
bailout in the country’s corporate history. Finland’s Gasum had its Russian gas supply
Uniper is considering suing Gazprom for cut off in May, after refusing to comply with a
justified gas supply cuts at the Stockholm arbi- Kremlin decree requiring European buyers
tration court, which has decided on a num- to make payments for deliveries in rubles at
ber of other disputes concerning Gazprom’s accounts at Gazprombank – a move aimed at
gas supply contracts over the years, including preventing those funds from being targeted by
with Poland’s PGNiG and Ukraine’s Naftogaz, sanctions. Gasum too has taken the matter to
Reuters reported, citing sources. Uniper said court. ™

Naftogaz to sue Gazprom over payments

UKRAINE NAFTOGAZ, Ukraine’s state-run oil and gas 2018 in a four-year legal battle over gas sup-
company, has filed a Request for Arbitration ply contracts. The Arbitration Institute of the
Naftogaz is suing with the International Court of Arbitration of Stockholm Chamber of Commerce ordered
Gazprom over the "ship the International Chamber of Commerce in Gazprom to pay $2.9bn ($2.56bn plus interest)
or pay" contract the pair Paris regarding the actions of Gazprom, Russia’s to Naftogaz for the failure to meet gas transit
signed in 2019. largest energy company, Naftogaz said in a press obligations.
statement on September 9. “We need not only to win the war against
“Naftogaz demands that Gazprom pay for Gazprom, but also to defeat Russia in its war of
the rendered service of organising natural gas aggression against Ukraine. And although arbi-
transportation through the territory of Ukraine. tration is always a difficult and long process, I
Funds were not paid by Gazprom, neither on believe that Naftogaz will repeat the success of
time nor in full,” the company stated. Stockholm 2019. And Ukraine will definitely
Yuriy Vitrenko, head of Naftogaz, refer- win too,” Vitrenko stated.
enced the 2019 “ship or pay” contract signed by The venue for the arbitration is Zurich,
Gazprom and mentioned that Russia has been Switzerland.
“pumping and paying less” than the agreement Reports that Naftogaz was preparing to sue
specifies. This comes after Russia reduced gas Gazprom were published in June. The general
transport through Ukraine in May when Gaz- director of Ukraine’s gas transportation system
prom halted the gas flow from the occupied (GTSOU), Serhiy Makogon, accused Gazprom
Sokhranivka gas metering station (GMS) in the of not paying for transit in June in full.
Donbas region. He demanded that Gazprom pay “This is a violation by Gazprom of the princi-
in full, in accordance with the contract. ple of the transit agreement ‘take or pay’,” he said.
“We will use our experience of winning “Today, Gazprom is obviously paying less than
against the Russians in arbitration and make it should under the contract, without any legal
them pay this time as well,” Vitrenko wrote on grounds”.
Facebook. “However, this is only the beginning, Vitrenko also announced over the summer
Naftogaz is evaluating the possibility of declaring that a $12bn claim against Gazprom for poten-
additional conditions.” tially impairing gas deliveries, which Naftogaz
Naftogaz previously sued Gazprom in dropped in 2019, will be reopened. ™

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