Russian court bars Dutch company from seeking arbitration abroad in Gazprom Export dispute
The Commercial Court of St. Petersburg and the Leningrad Region has ruled in favor of Gazprom Export (GE) in the latter entity’s lawsuit against Dutch gas transportation company Gasunie Transport Services (GTS) in which GE sought an injunction against the continuation of GTS’ international arbitration proceedings, a TASS correspondent reported from the courtroom, Azernews reports, citing TASS.
Further, the court ordered that GE be awarded penalties of 275.4 mln euros to be paid by GTS if the Dutch entity fails to comply with the injunction.
"In case of failure by Gasunie Transport Services BV to comply with the ruling of the Commercial Court of St. Petersburg and the Leningrad Region on the prohibition on continuing the proceedings in the District Court of the Northern Netherlands (rechtbank Noord Nederland) <...> [the court hereby] awards in favor of Gazprom Export LLC 275.4 mln euros to be paid in rubles at the prevailing exchange rate of the Central Bank [of Russia]," the court ruling says.
About dispute
Gazprom Export sued to demand that GTS be prohibited from initiating and continuing arbitration proceedings against the Russian company in the District Court of the Northern Netherlands. Gazprom Export also demanded that it be awarded compensation should the Dutch company fail to comply with the court injunction.
In late May 2022, Gazprom fully discontinued providing gas supplies to Dutch gas trader GasTerra because the Dutch company had failed to pay for supplied gas and refused to make payments in rubles.
Earlier, Gazprom also filed lawsuits in Russian courts against German traders Uniper Global Commodities SE and Metha-Methanhandel GmbH, Czech Republic-based NET4GAS, Naftogaz of Ukraine and Polish-Russian company Europol GAZ, which owns the Polish section of the Yamal-Europe gas pipeline, demanding that the defendants cease pursuing arbitration proceedings in foreign courts. In all cases the Russian company succeeded in obtaining judicial injunctions barring the continuation of arbitration proceedings in foreign jurisdictions. Gazprom is also trying to recover more than $930 mln from Poland-based Orlen, Europol Gaz and subsidiaries of global audit firm Ernst & Young.
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