Russia: Gazprom terminates gas contracts with Ukraine's Naftogaz

Russia Gazprom CEO Aleksei Miller announced the termination of gas supply and transit contracts with Ukraine's Naftogaz in Saint Petersburg on Monday. The decision comes after Stockholm arbitration court obliged Gazprom last Friday to pay Naftogaz almost $ 2.5 billion dollars, concluding a three-year dispute between the two companies. «Guided by double standards, the Stockholm arbitration... Еще court has taken an asymmetric decision on contracts for gas supply and transit with Naftogaz of Ukraine,» Miller said. He added that this decision has made «the prolongation of this contract economically unprofitable and impractical.» In Miller's opinion, the reason behind the court's decision was «the sharp economic decline in Ukraine.» Miller noted that Gazprom is «categorically against that that Ukrainian problems would be solved at our expense.» The Russian company’s claims against Naftogaz relate to fines for the insufficient withdrawal of gas by the Ukrainian side under the «take-or-pay» rule, as well as payment for gas delivered to Ukraine from May to June 2014. Naftogaz pushed for a retroactive change in the price of gas, refund of overpayments and a lift on the ban on reselling Russian gas.

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