The Brattle Group congratulates our client Naftogaz, the national oil and gas company of Ukraine, in the successful set-aside of take-or-pay claims in the arbitration over their gas supply contact with Russia’s Gazprom.
Naftogaz initiated the dispute after it had been unable to consume all the gas supplied in the contract, the largest in the world, and was facing claims for more than $34.5 billion in “take-or-pay” penalties. Naftogaz challenged the fairness of the take-or-pay clause and claimed that Gazprom underpaid for transit flow. They also argued that contractual renegotiation was needed after Ukraine adopted energy market rules established by the EU.
More information about the case can be found here.