Gazprom reserves almost $5 bln to pay fine to Naftogaz – Russian media

Russian gas monopoly Gazprom has reserved the sum for the entire amount of a $4.63 billion fine on the transit contract with Naftogaz.

According to the company's published report prepared in accordance with Russian Accounting Standards, the article "fines, penalties for violation of the terms of contracts" in Gazprom's balance sheet points out expense of RUB 272.943 billion ($4.74 billion), which almost completely corresponds to the decision of the arbitrators, RBK reports.

As 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.

Read alsoRussian gas transit via Ukraine down over 27% in Jan-Feb 2018Against 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.

On 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.

Read alsoGazprom appeals Stockholm Arbitration awardAccording 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.