Kazakhstan court overturns ruling on $1.4 billion debt claim against Russian gas giant
Photo: A court in Kazakhstan issues a new ruling on Gazprom's billion-dollar debt to Naftogaz of Ukraine (naftogaz.com)
The Court of the Astana International Financial Centre has overturned its previous ruling that recognized and allowed the enforcement in Kazakhstan of an arbitration award in the dispute between Naftogaz of Ukraine and Gazprom.
The case concerns about $1.4 billion. The earlier court decision had opened the way for Naftogaz to seek enforcement of the award and recover the funds from the Russian company in Kazakhstan.
After the case was reviewed, the previous ruling was revoked. This means that the international arbitration award against Gazprom can no longer be enforced in Kazakhstan based on the annulled AIFC court decision.
Background
In May, the AIFC Court, which operates under English common law principles, allowed the enforcement in Kazakhstan of an arbitration award in the dispute between Naftogaz and Gazprom.
However, Kazakhstan’s Ministry of Justice said the decision would not be enforced. Minister of Justice Erlan Sarsembayev explained that the dispute did not fall under Kazakhstan’s jurisdiction, the Russian side had not participated in the proceedings, and the ruling itself was not final.
The dispute between Naftogaz and Gazprom arose from a 2019 gas transit contract between the companies. After the suspension of transit through the Sokhranovka gas metering station in 2022, the Ukrainian company demanded compensation from the Russian gas giant.
