You're reading: Naftogaz signs agreements with Lawrence Graham, White&Case to provide legal support in foreign courts in 2014

National joint-stock company Naftogaz Ukrainy has signed agreements with Lawrence Graham (London, Britain) and White&Case LLP (Paris, France) to provide legal support of the company's foreign economic operations and presenting its interests in foreign courts in 2014.

Lawrence Graham, the agreement with which is worth $557,500, was
signed on July 21, will be involved in a case against Merchant
International Company Ltd. (the United States).

A debt of $24.72 million demanded by Merchant from Naftogaz Ukrainy
was formed in 1990s. OJSC Severstuddtroy reassigned the right to demand a
debt from Ukrgazprom, the legal successor of which his Naftogaz
Ukrainy, to Merchant.

Under the case the British court in November 2012 started proceedings
on the forced collection of 5.8 percent of shares in Britain’s oil and gas
company with assets in Ukraine JKX Oil&Gas that belong to Naftogaz
Ukrainy.

White&Case, the agreement with which is worth $1 million (value
added tax not included) and which was signed on July 21, will be
involved in a case against Italia Ukraina Gas S.p.a. (IUGAS, Italy).

The hearing of a case on the non-fulfillment of the conditions of a
contract signed on Dec. 24, 2003 to supply natural gas in 2004-2013
between Naftogaz Ukrainy and IUGAS lasted in 2008-2012.

The Stockholm Arbitration Court on Oct. 19, 2010 approved an
interim ruling and on Dec. 19, 2012 a final ruling on the claim of
the Italian company. The court issued rulings, which did not foresee the
collection of 13.1 billion cubic meters of natural gas in favor of
Italy’s IUGAS from Naftogaz Ukrainy.

According to the press service of Naftogaz Ukrainy, the Stockholm
arbitration court said that in the period until Sept. 1, 2008,
Naftogaz Ukrainy is not responsible for the non-fulfillment of supplies
of natural gas, as IUGAS did not submit applications on the supply of
gas.

The court merely ruled that the Ukrainian company had to pay fines to
IUGAS of roughly $12.7 million. The court also decided that in the
period of 2011-2012 Naftogaz Ukrainy is not responsible for the
non-fulfillment of supplies of natural gas as there were circumstances
which were beyond control of the company. In addition, the Stockholm
Arbitration Court did not rule on supplies of natural gas in the last
year when the contract was in effect – 2013.

On March 19, 2013, White & Case filed a counterclaim to Svea Court of Appeals to cancel the arbitral decision.

Naftogaz Ukrainy unites the oil and gas production assets in Ukraine,
and is the country’s gas transit, underground gas storage, and oil
pipeline transportation monopoly.