UK Court Seeks Gazprom's Asset List

London's commercial court granted a freezing order against Russian gas monopoly Gazprom June 18 in order to allow the Stockholm arbitration award to be enforced, Ukraine's gas monopoly Naftogaz said June 19. It has made similar moves in the Netherlands and Switzerland, although so far with no assets seized, according to Gazprom.

Within 48 hours of receiving the order which will be deemed to occur when it has been signed for at Gazprom's Moscow office, Gazprom must provide Naftogaz with a list of all its assets with a value greater than $50,000 in England and Wales. The court may grant Gazprom more time to produce this list; however, if Gazprom refuses to comply, it could be held in contempt of court and face fines or other penalties, Naftogaz said.

Until the hearing, Gazprom is prohibited from removing or diminishing assets in England or Wales unless: 

• It retains assets of $2.6bn (the value of the transit award) in England and Wales;
• Such assets are being used to fund legal advice and representation (although where assets are being used for this purpose Gazprom must tell Naftogaz where the funds are coming from); or
• The relevant dealing or disposition is in the "ordinary and proper course of business", except that in no event may Gazprom deal with or dispose of the shares in Gazprom (UK) Limited, and Gazprom must give Naftogaz notice before dealing with or disposing of any assets.

Naftogaz has also notified the London offices of 17 banks doing business with Gazprom that they may not facilitate any reduction in Gazprom's assets in England and Wales.

Last week, Gazprom said that a Swedish court had upheld Gazprom's appeal against the decision of the Stockholm arbitration court.