Ukrainian Naftogaz has announced it has won arbitrage proceedings against Russia's Gazprom on all contested issues in the gas supply contract, the company told RBK-Ukraina.
Naftogaz said that the arbitrage court fully rejected all of Gazprom's claims with regard to the "take or pay" condition for $56 billion in 2012-2017.
Naftogaz succeeded at reducing future contract volume obligations by over 90% and made them relevant to its actual import needs, reads the report. The price of gas off-taken by Naftogaz in second quarter of 2014 reduced 27% from $485/tcm to $352/tcm. Thus, Naftogaz saved $1.8 billion on gas purchased in 2014-2015 due to the revision of the contract price.
The destination clause and other discriminatory provisions were declared invalid to bring the contract in line with current European market standards. Naftogaz estimates the total positive financial effect of the arbitration over the lifetime of the supply contract at over $75 billion. Naftogaz claims up to $16 billion in transit contract arbitration against Gazprom; a decision expected on February 28, 2018.