• Natural Gas News

    Swedish Court Allows Enforcement on Gazprom

Summary

This removes any obstacles blocking the enforcement of the award.

by: William Powell

Posted in:

Breaking News, Natural Gas News, Europe, Corporate, Litigation, Political, News By Country, Russia, Ukraine

Swedish Court Allows Enforcement on Gazprom

The Svea Court of Appeal in Stockholm has repealed its June decisions to stay enforcement of the transit award in the arbitration between Ukraine's monopoly Naftogaz and the Russian gas monopoly Gazprom.

This means Gazprom has no legal grounds for refusing to pay the $2.6bn award to Naftogaz, which is proceeding with its enforcement efforts in all relevant jurisdictions. Gazprom can avoid this process if it finally chooses to pay voluntarily, Naftogaz said September 14.

In its brief reasons, the Court states that "grounds for stay of enforcement no longer exist. Previous decisions to stay enforcement shall therefore be repealed.” This decision cannot be appealed, according to the ruling.

The decision also implies that the Court considers it unlikely that Gazprom's challenge of the transit award, which is presently also considered by the Svea Court of Appeal, will succeed, said Naftogaz, welcoming the decision which it had expected.