"Gazprom has lost in international arbitration."

The International Chamber of Commerce (ICC) arbitration tribunal has fully supported CEZ's claim against Gazprom, obliging the Russian company to pay over 1 billion Czech crowns ($42 million) in compensation for gas supply shortfalls in 2022.

CEZ's press service reported this information.

The Czech company CEZ primarily purchased gas for electricity generation through intermediaries but also had a direct contract with Gazprom for a small portion of its imports, which was in effect until the end of 2022.

Following the onset of the full-scale Russian-Ukrainian war, Gazprom began to reduce gas supplies under specific European contracts, including the agreement with CEZ. The Czech company was forced to cover this shortfall by purchasing gas at the then-high prices, resulting in losses, according to the report.

In response to Gazprom's actions, CEZ turned to international arbitration, which lasted two years and ruled in favor of the Czech company.

Now, according to the court's decision, Gazprom is required to pay CEZ not only the specified compensation amount but also interest for delays, as well as cover legal expenses. If the payments are not made voluntarily, CEZ will seek to enforce them through compulsory measures.

Background. Earlier, Mind reported that Russian gas supplies to Europe via Ukraine would cease from January 2025 due to Kyiv's refusal to sign a new transit contract, but Putin stated that Gazprom would survive this during a live Q&A session.