Arbitral tribunal rules Finland not obliged to accept new payment procedure for Russian gas

MOSCOW. Nov 16 (Interfax) - An arbitral tribunal on November 14 ruled that Finland's Gasum was not obliged to pay in rubles, nor though the proposed payment procedure, for Gazprom gas; and the arbitral tribunal also ordered Gasum and Gazprom Neft to continue their bilateral contract negotiations in order to resolve the current matter, the Finnish company said in a press release posted on its website.

"Natural gas deliveries from Russia, in accordance with Gasum's supply contract, will not continue for the time being," Gasum emphasized in the press release.

"Gasum will not comment on the case further during the negotiations," according to the press release.

"Gasum has a long-term natural gas supply contract with Russian Gazprom Export. Last April, Gazprom Export presented Gasum with a demand that the payments agreed in the supply contract should be paid in rubles instead of euros. Gasum did not accept this demand. In addition, the companies had a significant disagreement regarding certain other demands made based on the agreement. Due to these reasons, Gasum referred the matter to arbitration in accordance with the supply contract. Gazprom Export ceased gas supplies to Gasum in May," Gasum said.

According to the press release: "On November 14, the arbitral tribunal issued an award in the matter. According to the award, Gasum is not obligated to pay in rubles nor though the proposed payment procedure. Furthermore, the arbitral tribunal ordered Gasum and Gazprom Export to continue their bilateral contract negotiations to resolve the current situation. Natural gas deliveries from Russia in accordance with Gasum's supply contract will not continue for the time being."