Mutual claims of Naftogaz and Gazprom under gas contract today some $17.9 bln and $45.7 bln

Mutual claims of national joint-stock company Naftogaz Ukrainy and Russia's Gazprom under a gas sale and purchase contract total some $17.9 billion and $45.7 billion ($14 billion and $36.7 billion ex interest) respectively.

According to an annual report of Naftogaz Ukrainy, these claims were at the date of approving this document.

Financial claims of Naftogaz under the contract include compensation of the overpaid sum for gas ($17.9 billion), while Gazprom's claims – unpaid bills for November 2013 through May 2014 ($2.9 billion) and payment for gas under the take or pay provision ($42.8 billion).

As for gas transit, Naftogaz's claims against Gazprom today amount to near $12 billion ($10.6 billion ex interest), while Gazprom's claims against Naftogaz - $5.3 billion ex interest. The Russian company reserved the right to submit additional counterclaims after receiving the decision on the gas sale and purchase contract.

The money claims are permanently updated until the decisions are made, in particular, for the interest, Naftogaz said.

The deadline for making the decision by arbiters under the gas sale and purchase contract today is April 30, 2017 and under the gas transit contract – June 30, 2017. The two dates can be revised by the arbiters under a request of the tribunal.

The decisions could be challenged in the Svea Court of Appeal in Stockholm under the restricted grounds, only if gross procedural mistakes are made or the public order is breached, reads the document.

Naftogaz said that Gazprom used the common approach in the two cases, insisting that the contracts are to be left unchanged and applied using the interpretation of the Russian company.

Naftogaz insists on revision of the two contracts in line with European standards and requirements, providing for the competitive price and economically justifiable tariffs.