Saturday, 15 March 2025
The Russian gas company Gazprom has been ordered to pay more than one billion Czech crowns (€40.1 million) to the Czech energy firm ČEZ for failing to deliver the agreed supply of natural gas. The ruling was issued by the arbitration tribunal of the International Chamber of Commerce (ICC), according to ČEZ and reports from news.cz and iDNES.cz.
ČEZ spokesman Ladislav Kříž confirmed that the arbitration panel fully upheld the company’s claim for damages. The dispute arose after Gazprom significantly reduced gas deliveries in 2022, despite prior contractual agreements made before Russia’s invasion of Ukraine. As a result, ČEZ had to purchase replacement gas at higher market prices, leading to financial losses.
In addition to the awarded compensation, Gazprom is required to pay interest on delayed payments and cover arbitration costs. If the Russian company does not comply voluntarily, ČEZ intends to enforce the ruling through legal means. “If Gazprom does not fulfill its obligation, ČEZ will proceed with the execution of the arbitration award through enforcement proceedings,” Kříž stated.
Despite the ruling, financial analysts remain skeptical about ČEZ successfully recovering the funds. Lukáš Kovanda, chief economist at Trinity Bank, noted that the market reaction was minimal, and precedent suggests that Gazprom may not comply with the decision. He cited similar cases where German energy firm Uniper and Austrian company OMV won arbitration against Gazprom but have yet to receive the awarded amounts.
The ruling underscores ongoing legal disputes between European energy firms and Gazprom following disruptions in gas supply linked to geopolitical tensions.
