Miller described the benefits of breaking contracts, «Gazprom» to «Naftogaz»

© RIA Novosti / Alexander Activesprite in fotoreceptor of the Board of Gazprom Alexey Miller during a meeting with Prime Minister Dmitry Medvedev. 13 Mar 2018Miller described the benefits of breaking contracts, «Gazprom» to «Naftogaz»© RIA Novosti / Alexander Activesprite the image Bank

Gazprom cancels a contract with «Naftogaz» to, in particular, to avoid future fines for transit through Ukraine less than 110 billion cubic meters per year, said the head of Russian gas holding Alexey Miller at a meeting with Prime Minister Dmitry Medvedev.

The Stockholm arbitration court in December and February have ruled on disputes between Gazprom and Naftogaz in respect of contracts for supply and transit of gas, respectively, requiring in the end the Russian company to pay the Ukrainian of 2.56 billion dollars. «Gazprom» has declared that these decisions have created an imbalance in favor of Kiev, therefore he on the one hand appeals to them, on the other hand, intends to terminate the contracts themselves through the same court. The fifth of March «Gazprom» sent «Naftogaz» official notification of the beginning of the procedure the termination of contracts.

«Arbitration decision «Gazprom» to pay «Naftogaz» of 2.56 billion dollars. But with the understanding that the NJSC «Naftogaz of Ukraine» made the statement that over the next 2018-2019 years, until the end of the contract, «Naftogaz of Ukraine» on the basis of the decision of the Stockholm arbitration will collect more fines from us, and we will have to pay some billions of dollars… of Course, in such circumstances, for us, these contracts become economically inefficient, impractical from an economic point of view,» explained Miller.

«Naftogaz» has achieved in court of compensation for underdelivery of volumes of gas transit, saying that, under the contract, the minimum volume of gas that Gazprom needs to be transported through the territory of Ukraine, is 110 billion cubic meters of gas per year, but really it was less. The Stockholm arbitration court listened to this argument, recover from «Gazprom» to «Naftogaz» 4,637 billion dollars compensation for failure to supply gas for transit. Based on previous solutions (gas supply contract), the Russian company has to pay less of 2.56 billion dollars.

Miller described the benefits of breaking contracts, «Gazprom» to «Naftogaz»© RIA Novosti, Integratiebeleid in fotolanciay conflict

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