Ukraine’s “Victory” in the Stockholm Arbitration Court Turned into Billions of Losses

Translated by Ollie Richardson & Angelina Siard


The decision of the Stockholm arbitration concerning the dispute between “Naftogaz” and “Gazprom” isn’t the “victory” for the Ukrainian authorities that Kiev claims it to be. On the contrary, according to this decision, Ukraine must pay “Gazprom” two billion dollars, and also pay penalties for a late payment.

It was stated by the energy expert Valentin Zemlyansky, speaking at a press conference in Kiev.

“We are now waiting. The victory concerning the gas delivery contract smoothly transformed into waiting for a decision on the transit claim. Because, the victory concerning the gas delivery contract turned out to be a loss of two billion dollars, with interest – because there is a penalty fee,” stated Zemlyansky.

According to him, currently nobody has seen the text of the decision of the arbitration. As Zemlyansky noted, even the Prime Minister of Ukraine Vladimir Groysman hasn’t seen the text of the verdict rendered by the arbitration. However, in the opinion of the expert, according to indirect signs, including statements made by the leadership of “Naftogaz”, it is possible to draw the conclusion that Ukraine will have pay two billion dollars, and also penalties.

Zemlyansky stressed that the sum increases every day by $600,000 from interest and penalty fees.

“Naftogaz expects that the decision on the transit contract will be in favor of Ukraine, and that this will negate the ‘victory’ of Naftogaz according to the decision of the Stockholm arbitration on gas supply,” explained Zemlyansky.

However, as the expert of the Public Security Fund Yury Gavrilechko believes, Ukraine won’t be able to win the court case on the transit dispute, because the cost of transit through Ukraine is higher than transit using Nord Stream. Respectively, the arguments of Kiev about a “non-market price” won’t be able to convince the court, considers the expert.

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