Kazakhstan court allows Naftogaz to enforce $1.4 billion Gazprom award
Naftogaz Secures Legal Victory Over Gazprom in Kazakhstan
Background of the Arbitration Case
May 21 (Reuters) - A court in Kazakhstan has allowed Ukrainian state energy firm Naftogaz to enforce a recovery of around $1.4 billion from Russia's Gazprom under a case covering gas transportation, the Ukrainian company said late on Wednesday.
Significance of the Ruling
• The ruling is the first public foreign court decision recognizing and granting permission to enforce the arbitration award against Gazprom in a separate state, Naftogaz said.
Details of the Arbitration Proceedings
• Naftogaz initiated arbitration proceedings against Gazprom in 2022, demanding the Russian gas major pay for the service of organising natural gas transportation through Ukraine.
Swiss Court's Involvement
• In March, it said the Swiss Federal Supreme Court rejected an application from Gazprom to overturn an earlier arbitral award that it must pay more than $1.4 billion to Naftogaz along with interest.
Enforcement and Broader Implications
Statements from Naftogaz Leadership
• "The court's decision in Kazakhstan is another practical result in the process of recovering funds from Gazprom," Naftogaz quoted its CEO Serhiy Koretskyi as saying.
• Naftogaz was working to enforce the arbitration award across multiple jurisdictions, Koretskyi added.
Kazakhstan Court's Jurisdiction
• Kazakhstan's deputy minister of justice told local media that Astana International Financial Centre Court, which made the ruling, is extraterritorial, and not based on Kazakh legislation.
(Reporting by Anna Pruchnicka in Gdansk; Editing by Thomas Derpinghaus)
