Media report that the Russian court has increased the penalty for Naftogaz Ukraine to $1.3 billion.

Russian news agencies reported that a Russian court increased the financial penalty imposed on Ukraine's Naftogaz state energy company from $150 million to $1.3 billion for its decision to pursue international arbitration in order to resolve a dispute over gas transit with Gazprom.

Naftogaz didn't immediately respond to a comment request.

St Petersburg's region court took action against Naftogaz in the last year, more than two years after Russia's war began with Ukraine. The five-year transit agreement for gas expired on January 1, 2020. After that date, Russia stopped exporting gas to Europe through Ukraine.

In May 2022, Ukraine halted gas transit through the Sokhranovka Metering Station. The country invoked "force majeure", which is a clause that's used when an enterprise is affected by a factor outside its control. This left one transit point for Russian gas, Sudzha near the Ukrainian border in southern Kursk region of Russia.

Interfax, a Russian news agency, reported that Gazprom had also stopped paying for transit via Sokhranovka while Naftogaz was pursuing international arbitration.

Gazprom has been fighting numerous legal cases with claims totaling around $18.5 billion ($20 billion). This is according to court documents.

Gazprom also filed counterclaims in Russia. Gazprom already has 10 of the 14 enforcement orders it received from Russian defendants. Mark Heinrich (Reporting and editing)

(source: Reuters)