Naftogaz to appeal Stockholm court decision to pay Italia Ukraina USD 200 mln
25 January 2011
Naftogaz plans to file an appeal against a December 2010 decision by the Stockholm Arbitration Court, which ruled it should pay USD 200 mln in damages to gas trading company Italia Ukraina Gas, according to Kommersant yesterday. The latter filed the lawsuit in January 2008 for a disruption in gas supplies. The contract between Naftogaz and Italia Ukraina Gas provides for the former to deliver 1.3 bln m3 of gas annually to Hungary. According to Kommersant, the Ministry of Fuel and Energy believes Naftogaz has a low chance of winning the appeal; undisclosed sources interviewed by Kommersant said they were concerned the court decision would set a precedent for other gas traders to sue Naftogaz.
