Ukraine's Naftogaz Vows To Continue Seeking Seizure Of Gazprom Assets

Ukrainian gas company Naftogaz said on Friday that it would continue looking for assets of Russia's energy giant Gazprom to recover $2.56 billion pursuant to the ruling of the Stockholm arbitration court

KIEV (UrduPoint News / Sputnik - 18th January, 2019) Ukrainian gas company Naftogaz said on Friday that it would continue looking for assets of Russia's energy giant Gazprom to recover $2.56 billion pursuant to the ruling of the Stockholm arbitration court.

Naftogaz CEO Andriy Kobolyev said on Thursday that the Ukrainian gas company had secured the seizure of Gazprom's foreign assets exceeding $2.56 billion. On the same day, Gazprom said that a Swiss court had overturned an earlier ruling to arrest the Russian energy company's assets in Nord Stream AG и Nord Stream 2 AG that operate Nord Stream and Nord Stream 2 projects and that are registered in Switzerland.

"Gazprom can hide its assets as long as it wants ... But we will not cease looking for and arresting its assets," Naftogaz said on Facebook.

Gazprom and Naftogaz have been entangled in litigation since June 2014, when Gazprom switched Ukraine to a prepayment scheme citing its massive gas debt.

In late February, the Stockholm arbitration partially satisfied Naftogaz claims over what it said was the failure of the Russian energy company to supply agreed volumes of gas for transit, ordering Gazprom to pay $4.63 billion to the Ukrainian firm. However, taking into account the amount of money previously awarded to Gazprom in relation with the gas supply contract, the mutual offset of liabilities resulted in Gazprom's obligation to pay $2.56 billion.

Gazprom filed an appeal to Sweden's Svea Court of Appeal, which ordered to suspend the execution of the arbitration court's ruling, however, Ukraine said it would start claiming the compensation via asset freezes in Switzerland, the Netherlands and the United Kingdom.