Wikborg Rein assists Naftogaz

PJSC Naftogaz of Ukraine was successful in securing a revision of the contract price effective from the second quarter of 2014 and the set-aside of take-or-pay claims in arbitration against Gazprom. This is one of the biggest commercial arbitrations ever.

Wikborg Rein's client Naftogaz, the national oil and gas company of Ukraine, was successful in securing a significant revision of the Contract Price and the set-aside of take-or-pay claims in the arbitration over their gas supply contact with Russia’s Gazprom. Naftogaz initiated a dispute regarding the price it was paying for gas to Gazprom, and Gazprom counter-claimed in respect of the gas that Naftogaz had been unable to consume but for which it was committed to pay. The result was that Naftogaz faced a claim for more than $44 billion in “take-or-pay” penalties. By the Final Award rendered on 22 December 2017 Naftogaz obtained a retrospective reduction in the Contract Price amounting to nearly 30% in mid-2014 and Gazprom's take-or-pay claim was completely rejected,. The overall value of Naftogaz's win amounts to more than USD 75 bln, over the life time of the Contract.

Wikborg Rein partners Dag Mjaaland (lead counsel) and Aadne Haga were instrumental in achieving a successful outcome. In addition, the Wikborg Rein team consisted of Senior Lawyer Anne-Karin Nesdam, Senior Associate Haakon Bingen and Associate Emilio Timpanaro.