A Stockholm based tribunal has recently handed down a second separate award in a dispute concerning storage and transit of large amounts of natural gas in and through Ukraine. The dispute originates from the Russian-Ukrainian gas crisis which has effected the supply of gas both in Ukraine and in Europe.
Setterwalls represents Rosukrenergo AG (a joint venture between Russian energy giant Gazprom and the Austrian based Centragas) in a dispute against the Ukrainian national oil- and gas company “Naftogaz of Ukraine”. In the arbitration Rosukrenergo claimed that Naftogaz had breached the parties’ storage agreement by unlawfully acquiring 11 billion cubic meters of gas belonging to Rosukrenergo.
The all Swedish tribunal agreed with Rosukrenergo and has in its recent award ordered Naftogaz to return to Rosukrenergo the unlawfully acquired gas. In addition, the tribunal ordered Naftogaz to deliver a further 1.1 billion cubic meters of gas in lieu of Rosukrenergo’s entitlement to penalties for breach of contract. The total value of the gas amounts to several billion USD.
Earlier this year the tribunal handed down a first separate award in the dispute ordering Naftogaz to pay to Rosukrenergo some USD 200 million for various breaches by Naftogaz of the parties’ agreements.
The final award is expected during the autumn 2010.
Rosukrenergo is represented by Jörgen Almelöv and Johan Sidklev.