Naftogaz wins arbitration against Gazprom for $1.37 billion

Naftogaz of Ukraine has secured another legal victory over Russia’s Gazprom, according to CEO Serhiy Koretskyi. An international arbitral tribunal seated in Switzerland ordered Gazprom to pay $1.37 billion in favor of Naftogaz.

Transit dispute with Gazprom

The case concerned Gazprom’s suspension of transit payments for Russian gas transported through Ukraine starting in May 2022. The transit agreement was based on "take-or-pay" principles.

In May 2022, the GTS Operator of Ukraine (GTSOU) declared force majeure at the Sokhranivka entry point due to the occupation of the Luhansk region. Russia refused to redirect the transit volumes to the Sudzha point and unilaterally reduced payments to Naftogaz.

Naftogaz initiated arbitration in September 2022. According to Koretskyi, Gazprom attempted to block the proceedings through Russian courts, but those efforts failed.

Initially, Naftogaz claimed $150 million in unpaid capacity fees. In early 2024, the company amended its claim to $843 million and reiterated that, due to Gazprom’s continued breach of the agreement, Naftogaz reserved the right to further increase its claims until the contract's expiry in January 2025.

In June 2025, the Swiss arbitral tribunal issued its final ruling, fully siding with Naftogaz and ordering Gazprom to pay $1.37 billion.

“This is a significant victory. I am sincerely grateful to Naftogaz’s legal team and our external counsel at Wikborg Rein for this result,” Koretskyi said.

According to the Naftogaz CEO, the next step will be enforcing the award.