Sunday, May 3, 2015

Ukraine Sues Russian Gas Giant Gazprom For $16 Billion


Reuters: Ukraine seeks more than $16 bln from Gazprom in pricing dispute

Ukraine is seeking more than $16 billion from Russia's Gazprom in its appeal to an arbitration court in Stockholm over a long-running gas pricing dispute between Kiev and Moscow, Prime Minister Arseny Yatseniuk said on Friday.

Ukraine's state gas business Naftogaz and Russia's Gazprom are bound by a 10-year gas agreement signed in 2009. Kiev is challenging the price of Russian gas, and billions of dollars in debts which Russia says have accrued, and appealing to international arbitrators for a definitive ruling.

"The transit contract is not fair for Ukraine and more than $10 billion should be paid to Naftogaz from Gazprom to compensate for losses. In this way, the overall sum we are seeking from Gazprom in terms of the gas supply contract and the transit contract is already over $16 million," Yatseniuk said in a post on Facebook.



WNU Editor: Gazprom is a monopoly .... and no one in Europe is happy with the arrangement that they have with Russia's number one gas company. My prediction .... even if the courts rule against Gazprom, the Russians are not going to comply.

More News On Ukraine Suing Russian Gas Giant Gazprom For $16 Billion

Ukraine seeks $16bn from Gazprom in arbitration court -- RT
Ukraine’s Naftogaz to Meet Russia’s Gazprom in Court Over Transit Contract -- Sputnik
Ukraine Seeks $16 Billion From Gazprom In Dispute -- Radio Free Europe
Naftogaz Files $16 Bln Claim Against Gazprom -- Forbes

3 comments:

Jay Farquharson said...

WNU Editor,

The Courts have already ruled against the Ukraine, many times. They are just playing out the Clock with appeals, while the interest mounts and the hyrnia devalues,

So they can use the IMF Loans, not to pay debts, but to triple down on war.

As much as the EU might want to, they are not going to be tearing up Gazprom Contracts, because if they do, every Southern Member of the EU will be standing in line, infront of the Court, demanding that their contracts with French and German Corporations, be torn up too.

War News Updates Editor said...

I completely agree Jay. The precedent of breaking contracts .... wow .... that is a place where many German/French/Nordic banks and governments do not want to go.

Jay Farquharson said...

WNU Editor,

The really pathetic part of this is that the IMF loans are in Dollars, the Naftogaz debts are in Euro's and Roubles, so by pauing now, given the conditions of the currencies, paying the debts off now, is like a 30% off coupon.

As the hyrnia falls and the rouble rises, the cuts in pensions, spending and the increases in taxes they will have to make to "pay the bill", will be twice as bad 6 months from now, four times worse, a year from now.