Gazprom's debt to Naftogaz grows to US$2.7 bln

The Russian gas giant Gazprom's debt owed to Ukraine's JSC Naftogaz of Ukraine under the Stockholm arbitration award has grown to US$2.7 billion, from the initial sum set at US$2.56 billion under the February 2018 ruling.

"Gazprom will have to pay us almost US$2.7 billion. At least in three jurisdictions – Switzerland, the United Kingdom and the Netherlands – we have launched enforcement procedures. Accordingly, we are continuing litigation regarding the seizure of Gazprom's assets and the sale of these assets to get the money Gazprom owes us," Naftogaz's Chief Operating Officer Yuriy Vitrenko has said in a video address posted on Naftogaz's Facebook page on November 29.

"We have won more than US$4.6 billion under the gas transit contract. Approximately US$2.1 billion of the US$4.6 billion has already been deducted, as we received this sum in the form of gas. Accordingly, the balance is about US$2.7 billion with interest rates that have already been incurred since then. This is what Gazprom will have to pay us," Vitrenko explained.

"The US$2.1 billion, which we have already received from Gazprom in the form of gas, is over eight times higher than Naftogaz's overall administrative costs since 2014, including all our salaries, bonuses, motor transport and money spent on lawyers. Although it is expensive litigation – what we've already received is absolutely much more than what we've spent," he added.

Read alsoGazprom may abandon long-term gas transit contract with Ukraine – Kobolyev

As UNIAN reported earlier, Gazprom late in February 2018 lost a lawsuit against Naftogaz in the Stockholm arbitration on a transit contract, according to which the Russian company must pay the Ukrainian side $4.6 billion. At the same time, taking into account the decision of the arbitration on the gas supply contract, the final amount of settlements between the companies amounts to $2.6 billion in favor of Naftogaz.

Against the background of their loss, Gazprom announced its intention to terminate in court the contract with Ukraine for the supply and transit of gas.

On March 20, Gazprom officially notified Naftogaz that it refuses to execute the arbitration decision.

At the end of May, Naftogaz began the process of forced collection from Gazprom of a $2.6 billion debt in foreign courts.

Trials for the arrest of Gazprom's assets are taking place in the UK, Switzerland, and the Netherlands. Among the assets of interest to the Ukrainian side are the shares of the companies-operators of the Nord Stream 1 and Nord Stream 2 gas pipelines.