Gazprom Hangs on to Naftogaz Damages for now

The Swedish Svea Court of Appeal has maintained the temporary suspension of enforcement of Naftogaz's monetary claim of several billion dollars owed by Russian export monopoly Gazprom under the transit contract.

This however was based on other grounds that had not been pleaded and to which Naftogaz had not been given an opportunity to respond, the Ukrainian company said June 28. Naftogaz said it intends to make a further submission shortly, rebutting these grounds, and seeking reversal of the latest decision by the court. 

Naftogaz also said the court has rejected Gazprom's allegation that the administrative secretary of the court wrote a large part of the reasons of the award.

The present decision is not binding on courts in other jurisdictions. Naftogaz will consequently proceed with its enforcement action in other jurisdictions, it said. These include the UK, the Netherlands and Switzerland.