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Stockholm court obliges Naftogaz to return 12.1 billion cubic meters of gas to RosUkrEnergo

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June 8, 2010, 6:30 p.m. | Business — by Interfax-Ukraine

The Arbitration Institute of the Stockholm Chamber of Commerce on June 8 obliged the national joint stock company Naftogaz Ukraine to return 11 billion cubic meters of gas to Switzerland-registered RosUkrEnergo (RUE) and to give it 1.1 billion cubic meters of gas as compensation.

The Arbitration Institute of the Stockholm Chamber of Commerce on June 8 obliged the national joint stock company Naftogaz Ukraine to return 11 billion cubic meters of gas to Switzerland-registered RosUkrEnergo (RUE) and to give it 1.1 billion cubic meters of gas as compensation, according to the Centragas company, which is a shareholder of RosUkrEnergo. "This ruling confirms that the gas in question was taken by Naftogas in breach of its storage contract with RUE, and that Naftogas will return 11 billion cubic meters of gas in storage in Ukraine to RUE on the same terms as before the expropriation," the press release of Centragas reads.

This ruling followed an earlier decision issued by the Stockholm arbitration court on March 30 2010 obliging Naftogas Ukrainy to pay RUE around $200 million as a penalty for various breaches of supply, transit and storage contracts.

This earlier ruling also becomes enforceable and will therefore be paid to RUE as part of this new decision, the press release reads.

As reported earlier, the Arbitration Institute of the Stockholm Chamber of Commerce is considering disputes between Naftogaz and RosUkrEnergo, which were merged into one case on August 28, 2009.

RosUkrEnergo was set up in the summer of 2004 by Gazprom and Centragas Holding AG on parity beginnings. Centragas Holding is owned by Ukrainian businessmen Dmytro Firtash (90%) and Ivan Fursin (10%). RosUkrEnergo was the monopoly gas-supplier to Ukraine in 2006-2008.
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