Gazprom unable to stop implementation of Stockholm Arbitration awards: MFA Ukraine

Russia's gas monopoly Gazprom is unable to halt the process of execution of awards handed down by the Stockholm Arbitration, obliging it to pay $2.58 billion to Ukraine's Naftogaz, said Deputy Foreign Minister of Ukraine Olena Zerkal.

Speaking on the air of one of Ukraine's radio stations, answering a question on whether Gazprom will refuse to comply with the arbitration awards, Zerkal said: "No, this is not an option, because there is a Convention providing tools to enforce court awards."

Read alsoUkrainian Justice Ministry seizes all assets of Gazprom in Ukraine"Gazprom is a gas supplier. Besides, they own securities, other property both in the territory of the EU member states and in Russia, so they will not be able to halt the implementation of the award," said Zerkal.

According to the diplomat, Naftogaz lawyers have already begun preparatory work in order to force Gazprom to fulfill the arbitration award and recover assets from the Russian company.

Naftogaz should apply for an order to enforce the court's decision ... It depends on the Naftogaz's zeal. Their lawyers are already working on the issue," Zerkal said.

Read alsoGazprom refuses to supply gas, pay off debt to Ukraine - NaftogazAs UNIAN reported earlier, Gazprom lost in a gas dispute with Naftogaz in the Stockholm Arbitration, which ruled that they pay the Ukrainian company $2.58 billion (with penalties). The court also ordered that the Russian company supply up to 5 billion cubic meters of gas per year in 2018-2019 at prices corresponding to those on European gas hubs.

Against this background, Gazprom announced its intention to terminate in court its gas transit and supply contracts with Ukraine, and also reduced the pressure at the entrance to Ukraine's gas transmission system, which complicated the transit of gas to Europe and caused a temporary gas shortage in the GTS (March 2-3).

After the "gas" crisis was successfully tackled, the European Commission stated that Ukraine had fulfilled all its obligations for transit gas supplies.

Read alsoEven after 2020, Gazprom to need Ukraine transitOn March 20, Gazprom officially notified Naftogaz that it refuses to comply with arbitration awards. The Russian company refused to supply gas to Ukraine and pay the Ukrainian side $2.58 billion.

According to Naftogaz, the Ukrainian company rejected Gazprom's proposals to terminate existing contracts. The next round of negotiations between the companies is scheduled for April 2018.