The overpayment for the transit of Russian gas went to offset the debt of Gazprom to Naftogaz

Overpayment for gas transit will be credited towards repayment of default interest, which has for the debt of OJSC “Gazprom” in accordance with the arbitration decision of February 28, 2018. The corresponding statement of “Naftogaz” sent to the Russian monopolist.

Recall, December 22, 2017 Stockholm arbitration has revised the pricing formula in the gas contract gas supplies to Ukraine and reduced its cost. This automatically led to the fact that rates were reduced, the cost of services and total cost of transit of gas, which are provided to “Naftogaz”.

However “Gazprom” has refused to execute the decision of the Stockholm arbitration in 2018 continues to pay for the transit of larger amount than puts “Naftogaz”.

Thus, “Naftogaz” has counted $9 million overpayment for transit service that were provided in August, as a fee for the enforcement of the arbitral award.

According to the information of the Minister of justice Pavel Petrenko, penalty that is charged to “Gazprom” makes $500 thousand per day.

More about the battle of “Gazprom” and “Naftogaz” read: Gazprom vs. Naftogaz — who won in Stockholm?

In February 2018 Stockholm arbitration court satisfied the claim of “Naftogaz” for compensation for undelivered “Gazprom” volumes of gas for transit. According to the results of two arbitration proceedings in Stockholm, Gazprom had to pay $2, 56 billion in favor of “Naftogaz”.

However, on 13 June, the Appeals court for the district of Svea (Sweden) has granted the request of PJSC “Gazprom” and issued the order on suspension of execution of the decision of the Stockholm arbitration, dated 28 February, in a dispute between “Gazprom” and “Naftogaz of Ukraine” in the framework of the contract for gas transit via the territory of Ukraine. In “Naftogaz”, assured that the decision is temporary, was made without hearing their arguments and promised to soon submit to the court their detailed explanations and counterarguments.

In September the court has unfrozen the decision of arbitration on the debt of “Gazprom” to “Naftogaz”.

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