Support The Moscow Times!

Gazprom Mulls Appeal on 'Take-or-Pay' Ruling

Gazprom Export said Thursday that it plans to appeal a decision handed down by the Supreme Court of Austria.

Gazprom is looking into appealing a ruling by the court regarding the recovery of advance payments for gas in the framework of a "take-or-pay" contract with Czech company RWE Transgas.

The firm, which is the Czech unit of Germany's RWE, won a landmark dispute with Gazprom over gas contracts Wednesday, when a court ruled for the first time that a company did not have to pay fines under the clause, which compels gas customers to pay for gas volumes they have committed to even if they don't take delivery.

A spokesman for RWE Transgas, the republic's dominant gas importer, said the company had successfully fought off a claim from Gazprom in a court in Vienna, Reuters reported.

"I can only confirm that RWE Transgas is the winner against Gazprom in the take-or-pay dispute over long-term contracts," RWE Transgas spokesman Martin Chalupsky said. "We are pleased with the court's decision. It will reduce our financial burden resulting from the contract by triple-digit-million euros per year."

Citing industry sources, Interfax reported that Gazprom tried to wrestle $500 million from RWE Transgas for failing to stick to the take-or-pay commitments from 2008 to 2011.

Related articles:

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.