30 Nov 2022 17:59

Uniper initiates arbitral proceedings against Gazprom to recover losses due to undersupply of gas

MOSCOW. Nov 30 (Interfax) - Germany's Uniper, previously the largest buyer of Russian gas, has initiated an arbitration process against Gazprom Export with an international arbitration tribunal in Stockholm, demanding compensation of losses incurred in connection with undersupply of gas since June.

Uniper has been forced to purchase replacement volumes at a higher price in order to fulfill its obligations to clients at the earlier agreed upon prices and volumes, it said. The company's expenses to this end currently total no less than 11.6 billion euros and will continue to grow until the end of 2024.

Supplies of Russian gas to Europe through the Nord Stream pipeline have begun to decrease due to the sanctions imposed on Gazprom by Canada. The sanctions have made it impossible to service the pipeline's gas turbine engines, which have broken down, and the line pipe of the offshore pipeline was damaged by powerful explosions at the end of September.

The company said earlier that Gazprom informed Uniper on July 14, 2022 that it had retroactively declared force majeure regarding past and present gas shortages. The German party finds this declaration groundless and has officially challenged it.