Cez Wins Arbitration Against Gazprom

CEZ Triumphs in Arbitration Case Against Gazprom

PRAGUE (Reuters) - Czech utility CEZ said on Wednesday it won an arbitration case against Russia's Gazprom in which it had sought damages exceeding 1 billion crowns ($42.16 million).

Damages were caused by Gazprom's significant reduction of gas supplies during 2022, after the Russian invasion of Ukraine, and CEZ had to cover this shortfall with gas purchased at the then high prices.

CEZ said an arbitration tribunal of the International Chamber of Commerce (ICC) had fully upheld its claim and that Gazprom should pay damages along with interest and the cost of proceedings.

"If Gazprom fails to do so voluntarily, CEZ will proceed to enforce the arbitral award," CEZ said.

Gazprom did not immediately reply to a request for comment.

CEZ had sought compensation in February 2023.

The Czech Republic was almost completely dependent on Russian gas supplies, mostly through the Nord Stream pipeline and Germany, until 2022 when Russia reduced shipments as relations with the West deteriorated sharply.

The central European country has replaced supplies with pipeline and LNG gas from other sources.

($1 = 23.7210 Czech crowns)

(Reporting by Jason Hovet, Editing by Louise Heavens)