Switzerland’s Federal Supreme Court has upheld a previous ruling ordering Russian state gas monopoly Gazprom to repay a $1.4 billion debt to Ukrainian state energy company Naftogaz, Naftogaz CEO Serhiy Koretsky announced on Friday.
The $1.4 billion dollar figure includes the original debt owed by Gazprom for gas transit services provided under a 2019 agreement between the two companies, as well as penalties for Gazprom’s failure to pay and the full reimbursement of legal costs incurred by Naftogaz.
“The Federal Supreme Court of Switzerland fully rejected Gazprom’s complaint and upheld the June 2025 arbitration decision,” Koretsky said on Facebook. “I am grateful to the Naftogaz Group legal team and our international legal advisors for their coordinated work and this result.”
An arbitration tribunal made up of Swedish, Swiss, and Israeli representatives ruled in Naftogaz’s favor in June 2025. In July 2025, however, Gazprom requested a stay of execution and initiated proceedings to set the arbitration award aside.
While the court first rejected Gazprom’s appeal in November 2025, this latest ruling fully dismisses it. Despite Gazprom’s attempts to challenge the ruling, the Swiss Federal Supreme court’s decision is final and cannot be further appealed, Koretsky confirmed.
According to a statement on the Naftogaz website, the court has ordered the Russian company to repay 200,000 Swiss francs ($254,000) in legal costs, as well as 250,000 Swiss francs ($317,500) for costs Naftogaz incurred in the Federal Supreme Court case.
The $1.4 billion debt stems from a longstanding dispute over transit contracts, where Gazprom failed to meet payment obligations for capacity it booked through Ukraine’s gas transportation system.
The 2019 Agreement on the Organization of Natural Gas Transportation between the two companies required Naftogaz to organize transit for Gazprom until Jan. 1, 2025. The company continued to fulfil its contractual obligations despite Russia’s full-scale invasion.
In May 2022, Russian forces made transit through the Sokhranivka gas transfer point – located on the border between Ukraine’s Luhansk region and Russia’s Rostov region – impossible.
Naftogaz continued to provide services via the Sudzha gas transit point, located in Russia’s Kursk region. However, Gazprom refused to pay the full contract price – leading Naftogaz to initiate arbitration in Switzerland in September 2022, in accordance with the rules of the International Chamber of Commerce.
While this case is now over, Naftogaz is currently pursuing several other international legal processes against the Russian Federation to seek compensation for assets and damages caused by the full-scale invasion.
“Naftogaz is working on forced debt collection from Russians. A few other lawsuits are underway against the aggressor country to compensate for losses, ” Koretsky added.
Russia tripled the number of strikes on Naftogaz facilities in 2025 compared to the previous three years combined, with 229 attacks recorded last year alone.