Brattle Client Naftogaz Awarded $2.56 Billion in Arbitration Victory Against Gazprom

The Arbitration Institute of the Stockholm Chamber of Commerce ruled that Russia’s Gazprom must pay Ukraine’s Naftogaz $2.56 billion, ending two commercial arbitrations that have lasted nearly four years. This award to Naftogaz follows a December decision by the same tribunal in which Naftogaz was also awarded most of what it had claimed.

In the long-running feud between the two companies, which has been inflamed by geopolitical tensions in the region, Naftogaz and Gazprom clashed over the volume and price of natural gas supplies to Ukraine and for volumes transited through Ukraine. The latest award related to Naftogaz’s claim that Gazprom had pumped too little gas through Ukraine and should have paid for higher volumes.

Brattle Experts Serena Hesmondhalgh and Carlos Lapuerta served as experts for Naftogaz throughout both arbitrations and were responsible for the economic analysis of all major issues, including quantification of damages, and the competition matters.