Ukraine's Naftogaz moves to enforce $1.37 bln arbitration award against Gazprom

Naftogaz Group has formally requested payment from Russia's Gazprom to recover $1.37 billion under the final award of international arbitration in Zurich, received by the company on June 20, 2025.

"Should Gazprom fail to comply voluntarily, Naftogaz plans to initiate asset recovery measures targeting the Russian company's holdings abroad," the group said in a Tuesday press release.

The amount includes the principal debt for gas transit services under the 2019 agreement, as well as penalties and full compensation for legal expenses incurred by Naftogaz.

Separately, Naftogaz continues to pursue enforcement of a separate $5 billion arbitration award against the Russian Federation for the illegal expropriation of its assets in Crimea in 2014.

"That process is already underway in ten jurisdictions. Initial enforcement efforts have yielded results in Finland and France, where Russian assets have been seized. Proceedings are ongoing in other countries, though further details remain confidential for legal strategy reasons," Naftogaz said.

In most jurisdictions, Naftogaz is represented by leading local law firms working on a pro bono basis.

As reported with reference to the Chairman of the Board of Naftogaz Serhiy Koretsky, the international arbitration tribunal, which considered the case of Gazprom's violation of its contractual obligations under the take or pay principle in Switzerland, ordered the Russian corporation to pay $1.37 billion in favor of Naftogaz Ukrainy.

"In September 2022, Naftogaz initiated arbitration, which Gazprom tried to block through Russian courts. It did not work. Now we have a final decision: the tribunal of arbitrators from Sweden, Switzerland and Israel completely sided with Naftogaz," Koretsky wrote on his page on Monday evening.

He recalled that Gazprom had violated its contractual obligations under the take or pay principle since May 2022 by stopping payments.