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Naftogaz may add $5 billion to lawsuit against Gazprom

Staff Writer | August 9, 2017
Ukraine’s state energy company Naftogaz may demand an extra $5 billion in its lawsuit against Gazprom. The claim against the Russian firm would then be over $18 billion.
Oil exploration   The "take-or-pay" terms
“Under the transit contract, we are waiting for the decisions on our suits … Our claims already are over $13 billion, and we will claim $5 billion more,” said Naftogaz chief commercial officer Yuriy Vitrenko in an interview on Ukrainian 5 Channel.

The litigation started three years ago when the firms counter-claimed over supply contracts of Russian gas to Ukraine as well as on gas transit to Europe inked in 2009 by Yulia Tymoshenko, the then prime minister of Ukraine.

Gazprom demanded the Ukrainian company pay penalties over the failure to fulfill the "take-or-pay" terms of the contract.

The Russian firm said the deal obligates Kiev to buy a minimum quantity of gas annually or face a penalty.

As of the end of May, Gazprom’s claim totaled $47.1 billion, $34.5 billion of which was for gas not delivered by the Russian company in 2012-2016.