Gazprom awarded $2bn in long-running SCC arbitration
Published: Tuesday 2 January 2018
Gazprom has secured a substantial award in its favour in a long-running and hard-fought SCC arbitration against Naftogaz. The dispute related to a long term gas supply contract. In a ruling handed down by the tribunal on 22 December 2017, since reported in the media, the tribunal ordered Naftogaz to pay Gazprom just over $2bn with interest. The tribunal rejected Naftogaz’s claim for an award of around $14bn for alleged overpayment for gas supplied between May 2011 and April 2014 but made modifications to the ‘take or pay’ provisions in the contract.
Gazprom was represented in the arbitration by Alan Gourgey QC (Wilberforce Chambers) and Philip Chong (DLA Piper London). They led a strong team consisting of Kassie Smith QC and Thomas Sebastian (Monckton Chambers), DLA Piper (London), DLA Piper (Moscow) and Vinge (Stockholm).