Gazprom Announces Termination of Supplies to Ukrainian Naftogaz

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As was reported, opening a National Security and Defense Council meeting earlier on that day, Ukrainian President Petro Poroshenko instructed Foreign Minister of Ukraine Pavlo Klimkin to initiate trilateral consultations with the European Commission and Russian Federation to implement the Stockholm Arbitration ruling on transit gas supplies.

"It's hard to say whether they (gas supplies", - Ed.) will be or not, because our understanding of the situation is very simple.

Taken into account Ukraine's over-2-billion-dollar arrears to Russian Federation for gas deliveries, Naftogaz is counting on receiving about 2.56 billion dollars from Gazprom, he said.

Meanwhile, Gazprom said earlier on Thursday it would contest the Stockholm order for it to pay Naftogaz $2.56 billion.

Andriy Kobolyev, Naftogaz board chairman, tweeted: "We are pleased to have won arbitration on key issues".

The row threatens to open a new front in a long-running legal battle between the companies - a by-product of broader political tension following Russia's annexation of Crimea in 2014 and support for separatists in eastern Ukraine.

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"Naftogaz succeeded on its claim for damages for under-delivery in Transit Arbitration with Gazprom".

It said it would "defend its rights in all ways available to it in accordance with applicable law".

The Arbitration Institute of the Stockholm Chamber of Commerce has imposed a $4.63-billion penalty on Russian energy giant Gazprom over its gas transit dispute with Ukraine's national oil and gas company Naftogaz, the Ukrainian company said in its Twitter.

"We do not have to buy 4 billion cubic meters, and it's not our fault, these are Gazprom's actions that contradict the contract, which contradict the decision of the tribunal, which contradict the spirit of the client-supplier relations and which, I think, will cost Gazprom, many political problems in Europe, "Kobolev added".

Due to the court's ruling, the company has to pay $2.56 billion in compensation to Naftogaz. "This is the result of the joint coordinated work of NJSC Naftogaz, government and president", Poroshenko said.

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