Ukraine's Naftogaz Believes Out of Court Settlement With Gazprom Improbable

An out of court settlement between Ukraine’s Naftogaz and Russian energy giant Gazprom on what the latter is claiming $31.75 billion and the former claiming $25.7 billion in compensation in a case launched in the Arbitration Court in Stockholm, Naftogaz head Andriy Kobolev said Wednesday.

KIEV (Sputnik) –Earlier, Naftogaz filed a lawsuit against Gazprom in the Stockholm Arbitration Court, seeking a compensation of nearly $30 billion.

“Gazprom is not suggesting an out of court settlement. And honestly speaking, I know why. Imagine that Kobolev wants to settle out of court. Pretend that I come and say that Gazprom has offered us compensation, no matter how much, and let’s agree. I think the number of inquiries by parliament members would flood the room from floor to ceiling. I think [Gazprom CEO Alexei] Miller has the same problem. It’s one thing to walk up to your boss and say, well, the court decided, but it’s another thing if you come and say that we decided to settle on compensation. So that’s why I don’t believe in an out of court settlement on this issue,” Kobolev said in an interview with Ukraine’s Ekonomicheskaya Pravda (Economic Truth) portal.

The Ukrainian gas company expects the court to take a decision on its dispute with Gazprom over the gas purchase contract until the fall of 2016, and on the gas transit contract in December 2016.

On March 31, the Russian government's quarterly discount for Ukraine of $17.77 per 1,000 cubic meters expired, with the end of first quarter price amounting to $212 per 1,000 cubic meters. The discount had been provided as part of the winter package agreed on by Russia, Ukraine and the European Union.

The same day, Naftogaz said that it had no plans to resume purchases of natural gas from Russia's energy giant Gazprom from April 1 but will continue to ensure uninterrupted transit of Russian gas to European consumers.