Gazprom to cancel contracts with Ukraine's Naftogaz

Gazprom has to immediately start the procedure for the termination of gas contracts with Naftogaz of Ukraine at the Stockholm Arbitration Institution, CEO of the Russian gas giant Alexey Miller told reporters.

"The Stockholm arbitration, guided by double standards, adopted an asymmetric decision on our contracts with Naftogaz of Ukraine regarding supply and transit of gas. The decision seriously violates the balance of interests of the parties under these contracts. The arbitrators ground their decision by the fact that the situation with the Ukrainian economy has drastically worsened. We are totally against the situation when Ukraine's economic problems are solved at our expense. In this situation, the continuation of the contracts’ validity is not economically feasible and unprofitable for Gazprom," Miller said.

Earlier, the company’s Deputy CEO Alexander Medvedev said that Gazprom had returned the money Naftogaz paid for gas supplies in March and would not start them due to the lack of the approved supplement to the current contract.

Naftogaz CEO Andrey Kobolev took this as the refusal of Gazprom to comply with the court's decisions. He also said due to lack of gas supplies from Russia Ukraine has faced a gas deficit and needs to limit fuel consumption in the country since March 6.

On February 28, the Arbitration Institute of the Stockholm Chamber of Commerce imposed a $2.56-billion penalty on Russian energy giant Gazprom over its gas transit dispute with Ukraine’s national oil and gas company Naftogaz.

Gazprom disagreed with the ruling and voiced its intention "to protect the rights which are available to it under the applicable law."

In this regard, Ukrainian President Pyotr Poroshenko said that Kiev will seek to seize Gazprom's assets if the Russian party does not comply with the decision of the Stockholm Arbitration.

According to TASS

DONi News Agency