Russian court blocks $19 billion gas payouts to Europe
Russian Gazprom owes European companies over 19 billion US dollars in compensation for broken gas contracts. However, a Russian court has prohibited these payments, meaning that European companies, including the Polish company EuRoPol Gaz, have little chance of recovering their dues, according to wnp.pl.
After the cessation of gas supplies by Russia to most EU countries in 2022, European companies sued Gazprom in arbitration courts. According to the verdicts, the Russian corporation must pay compensation, but Moscow does not recognize these decisions.
Gazprom refers to the decision of a Russian court in St. Petersburg, which banned the payment of 19 billion US dollars in compensation. The court argued that EU sanctions limited Gazprom's ability to defend itself in international courts, claiming the company did not have access to an "impartial and fair trial," reports the portal.
The largest creditors of Gazprom
The largest amount of compensation—15 billion US dollars—should be received by German gas recipients: Uniper Global Commodities SE and Methanhandel GmbH. The Polish company EuRoPol Gaz seeks to recover 2 billion US dollars, and the remaining dues are distributed among other European companies:
- Axpo Solutions – 686 million US dollars,
- OMV Gas Marketing & Trading – 633 million US dollars,
- DXT Commodities – 424 million US dollars,
- Gasunie Transport Services – 303 million US dollars,
- Engie – 336 million US dollars.
In total, Gazprom received 13 bans on paying compensation. Most companies have not decided to appeal these decisions, and only four enterprises are attempting to assert their rights before Russian appellate and cassation courts.
Russian debt and its consequences
The lack of payments has serious consequences for Russia's credibility as a supplier of raw materials. European companies may avoid entering into new contracts with Gazprom, complicating future Russian efforts to return to the EU gas market.
Theoretically, it is possible to seize Gazprom's assets in Europe, but their value is estimated at only a few percent of the debt. The recovery of dues through Russian courts is practically impossible due to their subordination to the Kremlin, notes wnp.pl.
Currently, natural gas from Russia still reaches select countries, but Gazprom has little chance of becoming the dominant supplier for Europe anytime soon. If Moscow ever wants to regain the market, it will have to settle its obligations to European companies.
