Gazprom PJSC to Pay $2.56 Billion to Naftogaz After Court Ruling
By Oliver Griffin
Gazprom PJSC (GAZP.RS) said on Thursday that it will pay $2.56 billion to Ukrainian oil company Naftogaz (NGAZ.YY) after a Swedish arbitration tribunal ruled against the Russian company.
The Arbitration Institute of the Stockholm Chamber of Commerce awarded compensation of $4.67 billion to Naftogaz after finding that Gazprom had failed to pump the full amount of gas as stated in a supply contract.
The Russian oil company said that after the tribunal previously ruled in Gazprom's favor, the court had offset the counterclaims of both companies, leaving Gazprom to pay $2.56 billion to Naftogaz.
The arbitration tribunal also rejected an appeal by Naftogaz to increase the gas transit tariff and amend the contract so as to comply with Ukrainian law, Gazprom said.
Gazprom said it disagrees with the ruling, saying that the outcomes of the two legal proceedings resulted in a significant imbalance between the two companies, in terms of gas supplies and transit.
Gazprom will defend its rights through all means available under applicable legislation, the Russian company said.
Write to Oliver Griffin at firstname.lastname@example.org
(END) Dow Jones Newswires
March 01, 2018 05:36 ET (10:36 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.