On 16 June 2025, an ICC arbitral tribunal seated in Switzerland and consisting of neutral and eminently qualified arbitrators from Switzerland, Sweden and Israel, issued an award ordering PJSC “Gazprom” to pay Naftogaz of Ukraine over USD 1.3 billion in unpaid gas transit organisation fees and interest.
Under the 2019 Swedish law Gas Transportation Organisation Agreement, Naftogaz was contracted to organise gas transit through Ukraine for Gazprom until the Agreement expired at the end of 2024. However, since Russian occupants made the organisation of gas transit through the Sokhranovka entry point impossible in May 2022, Gazprom refused to pay in full the gas transit organisation fees due to Naftogaz under the Agreement, notwithstanding that Naftogaz continued to offer the agreed services at the Sudzha entry point.
After a thorough review of several issues of EU, Swiss, Swedish and Russian procedural and substantive law, the tribunal found that Gazprom had no excuses for not paying the gas transit organisation fees in full and ordered Gazprom to pay the outstanding amounts. Naftogaz was also awarded interest on the missing payments and reimbursement of all arbitration costs.
Naftogaz was represented in this complex multi-jurisdictional case by a team of long-term partners from Wikborg Rein (lead), Nybron Advokater (Swedish law), Gabriel Arbitration (Swiss law), and Aequo (Ukrainian law) law firms. Partners Marcus Johansson and Charlotta Falkman participated for Nybron Advokater.
More information is available at the Naftogaz website (Ukrainian only)
