Italy's Eni Says Gazprom's Move To Cut Down Gas Supplies Subject To Arbitration

ROME (UrduPoint News / Sputnik - 09th May, 2023) Italian multinational energy company Eni S.p.A. said on Monday that the reduction in natural gas supplies by Russia's Gazprom is subject to arbitration.

Contracts with Gazprom Export remain in effect, although, starting from June 2022, the Russian energy giant began to reduce supplies, Eni said in a statement, answering questions from its shareholders. The company noted that Gazprom's decision to cut down supplies is a subject of arbitration proceedings.

In a March report, Gazprom said that Eni, together with German energy producer RWE, Polish oil and gas company PGNiG, Finland's state-run energy firm Gasum, French energy company Engie, and Ukraine's largest national oil and gas company Naftogaz, had initiated legal proceedings against it in 2022.

Eni, in particular, notified Gazprom's export division of the start of arbitration related to the application of the decree of the Russian president on payment for supplies in rubles.

ENI's head Claudio Descalzi said in January that Italy would be able to completely abandon Russian gas in the winter of 2024-2025 thanks to its diversification of supplies, including greater cooperation with Algeria.

In 2022, Eni contracted 17 billion cubic meters from Gazprom, of which 11 billion cubic meters were received by Italy and about 6 billion cubic meters were delivered via the Blue Stream gas pipeline to Turkey.