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.
- Ukraine: Zelenskiy's Peace Effort Encounters Resistance (Oct. 8, 2019)
- Watching for Signs of Progress in Eastern Ukraine (Oct. 2, 2019)
- Russia and Ukraine Seek a Contentious New Gas Transit Deal (Sept. 13, 2019)