POST Online Media Lite Edition


Gazprom seeks to annul natural gas contract with Ukraine

Staff Writer |
Russia's state natural gas company Gazprom says it's beginning efforts to end its contract to supply gas to Ukraine, raising concerns about downstream gas supply to European countries.

Article continues below

Much of Russia's gas to Europe is shipped via Ukraine's pipeline system. A Russia-Ukraine gas dispute in 2009 significantly cut supplies to Europe in frigid winter weather.

Gazprom deputy chairman Alexander Medvedev said that the company has begun procedures in the Stockholm international arbitration court to end its contracts with Ukraine's Naftogaz.

The move comes after the Stockholm body ruled that Gazprom should pay Ukraine more than $2 billion for failure to deliver the agreed-upon volumes of so-called "transit gas."

Naftogaz said in a statement Saturday that transit of gas to Europe "remains intact."

What to read next

Ukrainian anti-monopoly suit against Gazprom set for December 5
Gazprom announces to ship gas via western route
Gazprom to cut capital expenditure by almost $8 billion