Uniper is facing significant losses due to restrictions on Russian gas supplies at the end of 2022.
The Stockholm Arbitration Court allowed the German company Uniper to terminate a long-term contract with Gazprom Export and awarded it 13 billion euros in compensation for gas shortages from mid-2022. The company announced this on Wednesday, June 12.
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“Uniper decided today to terminate long-term contracts for the supply of Russian gas and thereby legally terminate its long-term relationship with the Russian state company Gazprom Export,” the statement said.
This decision became possible after on June 7, the Arbitration Court awarded Uniper the right to terminate the contracts and recover more than 13 billion euros in compensation from Gazprom for the gas volumes not supplied by the Russian side since mid-2022.
Although only a limited volume of gas has been supplied from June 2022, and no gas has been supplied since the end of August 2022, the long-term gas supply contracts between the two companies are still legal, and the individual contract will continue to be valid until the mid-2030s.
After Uniper suffered huge losses due to restrictions on Russian gas supplies, it started arbitration proceedings against Gazprom Export at the end of 2022. The possibility to resolve the dispute in the arbitration court was provided in the contract and has been used by both parties in other disputes on several occasions in the past. The court in Stockholm made its decision in accordance with Swiss law. The arbitration award is legally binding and final.
We remind you that in 2024 the agreement on the transfer of Russian gas through Ukraine to the EU will expire. Brussels and Kyiv are now discussing possible supplies next year. One option is to pump gas from Azerbaijan through pipelines leading from Ukraine to Europe.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.