Kyiv economic court of appeal on Wednesday dismissed the appeal of “Gazprom” demanding to cancel the decision of the court of first instance of forced recovery from the company in favor of Ukraine fine on 171,8 billion hryvnia (about 6.4 billion) for alleged abuse of monopoly position in the Ukrainian market of gas transit.

“The court decided the appeal of “Gazprom” to leave without satisfaction, the decision of Economic court of Kiev in the matter to rest”, – quotes Agency “the Prime” the decision of the presidency of the jury in the case of the judge Carolina Tarasenko.

The judge added that the court’s decision can be appealed in the Supreme economic court of Ukraine within the statutory deadlines.
In the course of the appeal, the judicial Board has refused “to Gazprom” in the appointment of judicial-economic examination.

AMC has decided to fine “Gazprom” on 25 January 2016. The amount of the fine amounted to 85,966 billion hryvnia (later the amount increased due to the accrual of default interest). The Ukrainian Antimonopoly office considered that “Gazprom” has used her status and broke the contract with “Naftogaz”, preventing the increase of transit fees.

AMC also came to the conclusion that “Gazprom” has violated the terms of the contract with “Naftogaz” and ignored any request to change conditions of cooperation on commercially reasonable and mutually beneficial.

To violations of a prisoner with “Naftogaz” of the contract, the Antimonopoly bodies of Ukraine attributed the sharp decrease of the volume of gas pumped by Gazprom to Europe via the territory of Ukraine. Under the terms of the contract, it is set at 100 billion cubic meters, but in 2014 dropped to 62 billion. Their losses from the fall in transit volumes, “Naftogaz of Ukraine” is estimated at six billion dollars.

“Gazprom” considers the penalty illegal, but could seek recovery of the penalty in those countries where the Russian gas monopoly has a property. Claim of Kiev, thus, can deliver to Gazprom in a lot of trouble.

Initially, the deadline penalty payment was scheduled for 12 April. Gazprom first said that the AMC has no authority in the regulation of transit through Ukraine, but then decided to challenge the penalty.

14 April the Economic court of Kiev refused to consider the complaint of “Gazprom”, and on Wednesday, may 18, the city economic court of appeal dismissed the appeal of “Gazprom”. On 13 July the Supreme economic court of Ukraine finally rejected the appeal of “Gazprom” on a fine 85,966 billion hryvnia.
In August, the AMC has submitted the claim about compulsory collecting of the penalty from “Gazprom” in Ukraine, and in early December Gazprom filed a lawsuit in Stockholm arbitration for the decision of Economic court of Kiev.

Kiev stopped buying gas from Russia in November 2015. According to the results of trilateral talks with the participation of the European Commission, the Ukrainian side expressed its readiness to buy from Russia from 1.5 to four billion cubic meters of gas this winter, and Russia confirmed readiness to supply gas to the EU and Ukraine. Minister of energy of Russia Alexander Novak said that the parties have no disagreement regarding the price of gas in the fourth quarter. Now Kiev buys gas transit in the European Union, claiming it is cheaper.

In 2014 the parties have legal proceedings in arbitration of Stockholm on points long-term contract to supply Russian gas to Ukraine. Earlier in Kyiv said that the country could do without Russian gas supplies, but will not abandon the tripartite negotiations (with the mediation of the European Commission) on the terms of fuel supply.



A court in Kiev confirmed legality of collecting from Gazprom’s $ 6.4 billion 22.02.2017

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