Germany's Uniper Appeals Russian Ruling That Could Cost it Billions
By Mauro Orru
Uniper is appealing a decision from a Russian court that threatened the energy giant with billions of euros in fines if it pursues arbitration proceedings against Gazprom Export internationally, the latest salvo between the two companies over interrupted gas supplies.
The German utility said Tuesday that it had filed an appeal against the ruling in Russia, calling the March 13 decision from the Arbitration Court of St. Petersburg and the Leningrad Region a violation of international law and the principle of fair trial.
Uniper launched proceedings against Gazprom Export in Stockholm, Sweden, toward the end of 2022 to claim compensation for gas it hadn't received from Gazprom Export under long-term gas supply contracts following Russia's decision to throttle natural-gas deliveries to Europe.
Uniper had to procure replacement volumes at higher prices through different sources to meet its own obligations to customers, incurring costs of about 13.2 billion euros ($14.21 billion) in 2022, according to the group's annual report.
The Arbitration Court of St. Petersburg and the Leningrad Region ruled in March that Uniper could no longer pursue arbitration proceedings internationally, or it would allow Gazprom Export to claim EUR14.3 billion in damages, according to Russian state news agency TASS.
"We expect a judgment in the arbitration proceedings against Gazprom Export in the coming months," a Uniper spokesman said, adding the company didn't wish to speculate on a decision and possible consequences. Gazprom Export didn't respond to a request for comment.
Last year, Russia took control of the assets of Uniper and Finland's Fortum in the country, handing the stakes in their Russian subsidiaries to a government agency.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
May 07, 2024 07:26 ET (11:26 GMT)
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