Gas importer Uniper announced the termination of contracts with Gazprom
The largest German gas importer Uniper announced the termination of long-term contracts for the supply of Russian gas with Gazprom Export. In company statedthat such a step became possible after the arbitration court granted it the corresponding right and awarded compensation in the amount of 13 billion euros for the amount of fuel not supplied since 2022.
“Although gas supplies ceased from the end of August 2022, long-term gas supply contracts between the two companies were still legally valid and individual contracts would continue to be in effect until the mid-2030s,” Uniper said in a press release .
The CEO of the German company, Michael Lewis, speaking about “compensation for losses,” in turn, noted that “from the point of view of today, it is not yet clear whether significant amounts should be expected.” The report also states that due to the cessation of Russian gas supplies, Uniper had to purchase fuel “in other ways”, which sometimes led to additional daily costs of “hundreds of millions” of euros, which could only be covered with government support.
Last spring, President Vladimir Putin transferred the German company’s share in its Russian subsidiary Unipro to the external management of the Federal Property Management Agency. Uniper then said that from the end of 2022, they actually cannot exercise operational control over the Russian organization, which is deconsolidated and almost completely written off from the balance sheet of the parent company. Later, the decision of the Russian authorities there was called a violation of bilateral agreements, declaring their readiness to initiate an arbitration case if the dispute is not resolved during negotiations.
In March, a Russian court decided to prohibit Uniper from suing Gazprom Export abroad, threatening the German company with a fine of 14.3 billion euros, wrote TASS. Uniper expressed concerns that this could allow its assets in Russia to be seized.
#German #Uniper #announced #termination #contract #supply #Russian #gas