Naftogaz receives Gazprom notice of it turning to arbitration to terminate contracts

Naftogaz Ukrainy has received a notice from Gazprom, announcing the Russian company's intention to turn to an arbitration in Stockholm regarding the termination or review of the terms of the 2009 contracts for the supply and transit of natural gas, Naftogaz' chief commercial director Yuriy Vitrenko said.

The procedure envisions a notice period of 30 or 45 days (30 for the supply contract; 45 for gas transit), in which the parties must try and reach agreement over contentious points.

In particular, Naftogaz sees no reason to terminate the transit contract, because Gazprom's explanations look unacceptable, Vitrenko said.

At the same time, Naftogaz is ready to discuss with Gazprom the conditions which would bring their transit contract closer to the EU laws.