Naftogaz said that a London court has issued an order to freeze the UK assets of Russia’s Gazprom to enforce the $2.6bn Stockholm Arbitral award granted to the Ukrainian national oil and gas firm.
Image: Naftogaz gets favorable ruling in a UK court against Russia’s Gazprom. Photo: courtesy of Naftogaz.
As per the ruling of The Commercial Court in London, the Russian oil and gas giant has to provide a list of all assets located in England or Wales with a value greater than $50 to Naftogaz in addition to freezing of the assets.
The ruling from the Stockholm Arbitral Tribunal came in February, which ordered Gazprom to pay a compensation of $4.63bn to Naftogaz to settle a gas transit lawsuit. However, after the settlement of residual payments for gas delivered in 2014 and 2015, the amount to be paid by the Russian firm was adjusted to $2.56bn.
In late March, Naftogaz said that Gazprom refused to honor the valid arbitration award.
The Commercial Court in London, which has ruled in favor of Naftogaz, has fixed a hearing on the order for 6 July 2018. Naftogaz said that until then Gazprom is obligated to maintain assets in both England and Wales, equivalent to the value of the gas transit award.
Naftogaz said that the London court gave its ruling despite being fully aware of a temporary decision made earlier in the month by the Svea Court of Appeal in Stockholm to suspend the enforcement of the gas transit award.
Last week, the Ukrainian firm filed a plea in the Stockholm court appealing for the reversal of the decision. In its request, Naftogaz filed evidence refuting the allegations of Gazprom that the award had been improperly drafted.
Naftogaz CEO Andriy Kobolyev said: “Despite media reports to the contrary, the Swedish court ruling does not suspend the award itself, it only suspends enforcement in Sweden.
“It is up to the courts of each individual country to determine, under its own national laws, whether the Swedish ruling suspends the enforcement of the award in such country. The Transit Award remains valid, and interest continues to accrue and we will seek enforcement in jurisdictions where enforcement is an option.”