Russian court blocks $19bn (£15bn) compensation to EU firms amid sanctions dispute
Russian Gazprom owes European companies over 19 billion dollars (approximately 15 billion pounds sterling) in compensation for broken gas contracts. However, a Russian court has prohibited their payment, which means that European companies have little chance of recovering their dues, according to wnp.pl.
After 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 recognise these decisions.
Gazprom refers to the decision of a Russian court in St Petersburg, which banned the payment of 19 billion dollars (15 billion pounds sterling) in compensation. The court argued that EU sanctions limited Gazprom's ability to defend itself in international courts, which meant 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 dollars (11.6 billion pounds sterling) – should be received by German gas recipients: Uniper Global Commodities SE and Methanhandel GmbH. The Polish company EuRoPol Gaz has to recover 2 billion dollars (1.5 billion pounds sterling), and the remaining dues are distributed among other European companies:
- Axpo Solutions – 686 million US dollars (531 million pounds sterling),
- OMV Gas Marketing & Trading – 633 million US dollars (490 million pounds sterling),
- DXT Commodities – 424 million US dollars (328 million pounds sterling),
- Gasunie Transport Services – 303 million US dollars (234 million pounds sterling),
- Engie – 336 million US dollars (260 million pounds sterling).
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 would 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 percent 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.
