Russian court blocks $19 (CAD 27) billion payout to European gas firms
Russian Gazprom owes European companies over 19 billion US dollars (27 billion Canadian dollars) in compensation for broken gas contracts. However, a Russian court has prohibited these payments, which means that European companies have little chance of recovering their dues, according to wnp.pl.
Following the cessation of gas supplies by Russia to most EU countries in 2022, European companies sued Gazprom in arbitration courts. According to the verdicts, the Russian corporation must pay compensation, but Moscow does not recognize these decisions.
Gazprom refers to the decision of a Russian court in St. Petersburg, which banned the payment of 19 billion US dollars (27 billion CAD) in compensation. The court argued that EU sanctions limited Gazprom's ability to defend itself in international courts, meaning the company did not have access to an "impartial and fair trial," reports the portal.
The largest creditors of Gazprom
The largest amount of compensation—15 billion US dollars (21.5 billion CAD) —should be received by German gas recipients: Uniper Global Commodities SE and Methanhandel GmbH. The Polish company EuRoPol Gaz is owed 2 billion US dollars (2.9 billion CAD), and the remaining dues are distributed among other European companies:
- Axpo Solutions – 686 million US dollars (987 million CAD),
- OMV Gas Marketing & Trading – 633 million US dollars (911 million CAD),
- DXT Commodities – 424 million US dollars (610 million CAD),
- Gasunie Transport Services – 303 million US dollars (436 million CAD),
- Engie – 336 million US dollars (484 million CAD).
In total, Gazprom received 13 bans on paying compensation. Most companies have not decided to appeal these decisions, and only four enterprises are trying to assert their rights before Russian appellate and cassation courts.
Russian debt and its consequences
The lack of payments has serious consequences for Russia's credibility as a supplier of raw materials. European companies may avoid entering into new contracts with Gazprom, which will make it difficult for Russians to return to the EU gas market.
Theoretically, it is possible to seize Gazprom's assets in Europe, but their value is estimated at only a few per cent of the debt. The recovery of dues through Russian courts is practically impossible due to their subordination to the Kremlin, notes wnp.pl.
Currently, natural gas from Russia still reaches selected countries, but there is no chance of Gazprom returning as the dominant supplier for Europe anytime soon. If Moscow ever wants to regain the market, it will have to settle its obligations to European companies.
