28 November 2019

Naftogaz wins challenge proceedings

On 27 November 2019, the Svea Court of Appeal rejected the Russian gas giant Gazprom’s challenge of a separate award rendered on 31 May 2017 in a gas sales arbitration between Gazprom and the Ukrainian gas company Naftogaz. Through the challenged award, the arbitral tribunal inter alia held certain contractual provisions (on which Gazprom based a USD 56 billion payment claim) to be invalid under Section 36 of the Contracts Act. The Svea Court of Appeal rejected all three of Gazprom’s challenge grounds and found that no procedural error had been made. Gazprom has also challenged the final award in the arbitration based on the corresponding allegations of procedural errors. It has also challenged an arbitral award in a parallel gas transit arbitration between the parties.

Gernandt & Danielsson (partners Björn Tude and Marcus Johansson) represented Naftogaz in the challenge proceedings, assisted by partners Dag Mjaaland and Aadne Martin Haga of the Norwegian law firm Wikborg Rein. Wikborg Rein, assisted by Gernandt & Danielsson and Ukrainian law firm Aequo, represented Naftogaz in the underlying arbitration.

For further information, please see Svea Court of Appeal’s press release:

https://www.domstol.se/svea-hovratt/nyheter/2019/11/arbitral-award-in-a-dispute-regarding-supply-of-natural-gas-remains-unchanged/

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