After the Gazprom-Naftogaz arbitration: commerce still entangled in politics

The final decision in the commercial arbitration between Gazprom and Naftogaz Ukrainy, on multiple disputes over their gas supply and transit contracts for 2009-19, was issued late last month. The total claims in the case, which started in 2014 at the Arbitration Institute of the Stockholm Chamber of Commerce, were reported to be higher than $70 billion, making it one of the largest cases ever. Gazprom responded by appealing the decisions, initiating proceedings to terminate the contracts and cancelling the planned resumption of direct imports to Ukraine. This Energy Insight argues that hopes for a managed decline of the Russian-Ukrainian gas trade on a commercial basis, despite the political hostility between the two sides, are not being realised. Commerce has been unable to disentangle itself from politics. Prospects for the 2020s, when Ukrainian transit will still be required, in spite of Gazprom’s transit diversification projects, are discussed.

By: Simon Pirani

Latest Tweets from @OxfordEnergy

  • A review of a new OIES paper on oil market conditions and Saudi Arabia’ balancing act: The extent of dislocations i… https://t.co/n8EFPraNEj

    May 24th

  • Jonathan Stern on the latest Groningen earthquake: I think it is likely to accelerate even further the phase-out of… https://t.co/d1tGcAIAjp

    May 23rd

  • About 43% of the industrial gas demand in Europe could, in theory, decline in the 2020s as a result of decarbonizat… https://t.co/0iMqP4dCsd

    May 23rd

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.