International arbitration News, analytics and practice

24Jun/100

All or Nothing? – A Debate on the Production of Documents

On 15 September 2010, Young Arbitrators Stockholm (YAS) will host a seminar together with ICDR Y&I, the International Centre for Dispute Resolution Young & International.

 The program will take the form of a debate, titled "All or Nothing - A Debate on the production of documents", and will be moderated by Patricia Shaughnessy (Stockholm Centre for Commercial Law, Sweden) and Mark Kantor (Georgetown University, Washington, USA).All or Nothing Arbitration2 All or Nothing? – A Debate on the Production of Documents

10Jun/101

Stockholm Court Rules Against Naftogaz Ukrainy in RosUkrEnergo Gas Arbitration Case

RosUkrEnergo, the controversial former intermediary in the supply of Russian and Central Asian gas to Ukraine, has won a key ruling in its arbitration case against Naftogaz, but the Stockholm Arbitration Tribunal has said that the cash-strapped Ukrainian state gas firm Naftogaz must restore 12.1 bcm of gas in storage to RosUkrEnergo rather than paying cash as compensation.

IHS Global Insight Perspective  
Significance The Stockholm Arbitration Tribunal ruling essentially restores ownership title to RosUkrEnergo of 11 bcm of gas in Ukrainian storage that the intermediary claimed was "expropriated" by Naftogaz in the aftermath of the political deal that ended the January 2009 Russia-Ukraine gas dispute and awards a further 1.1 bcm of gas in lieu of damages.
Implications The court ruled that Naftogaz (which has already been held responsible for paying US$197 million in damages to RosUkrEnergo), must provide this 12.1 bcm by 1 September, giving it nearly three months to pump additional supplies into storage and transfer title to this gas to RosUkrEnergo—or come up with another solution.
Outlook Although the arbitration court's ruling is a clear victory for RosUkrEnergo, the decision to award the company (a joint venture between Centragas and Gazprom) in gas rather than in cash means that state-owned Ukrainian firm Naftogaz—which could scarcely afford to pay several billion dollars in cash damages—has dodged a bullet that could have pushed it into bankruptcy.