situation report

Russia, Ukraine: Swedish Court Rejects Gazprom Appeal, Possibly Complicating Energy Talks

1 MIN READNov 27, 2019 | 16:08 GMT

A Swedish court has rejected an appeal by Russian energy company Gazprom against an arbitration ruling that awarded Ukraine's Naftogaz about $2.6 billion over a gas transit dispute, Tass reported Nov. 27....

What Happened: A Swedish court has rejected an appeal by Russian energy company Gazprom against an arbitration ruling that awarded Ukraine's Naftogaz about $2.6 billion over a gas transit dispute, Tass reported Nov. 27.

Why It Matters: If Gazprom refuses to follow the court's decision and pay Naftogaz, it could pave the way for the Ukrainian company to seize Gazprom's assets across Europe to recover the $2.6 billion from the initial arbitration ruling, which would complicate ongoing talks to renew a gas transit agreement between Russia and Ukraine.

Background: Russia has demanded Ukraine drop all litigation as part of the negotiations to reach a new gas transit deal. The current agreement will expire Dec. 31 and both sides are scrambling to reach a new accord to prevent gas supply disruptions to Europe.

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