Business
Uniper wins arbitration against Gazprom and terminates gas contracts
Stopped natural gas deliveries from Russia: Uniper is allowed to terminate Gazprom contracts – Arbitration court grants significant compensation.
The nationalized energy company Uniper has scored a significant victory in its legal dispute with the Russian state-owned company Gazprom. An arbitration court in Stockholm allowed Uniper to terminate its gas supply contracts with Gazprom and awarded the Düsseldorf-based company more than 13 billion euros in damages.
**Uniper announced on Wednesday that the arbitration decision provides legal clarity. "For Uniper, this judgment provides legal clarity," said Uniper CEO Michael Lewis. However, it remains uncertain whether the compensation payments will actually be made, as Uniper only mentioned "possible payments" that could go to the federal government.**
The conflict with Gazprom had brought Uniper to the brink of bankruptcy in 2022. After the Russian attack on Ukraine and the subsequent stoppage of natural gas supplies, Uniper was forced to procure expensive replacements on the spot market. This led to significant financial burdens. The German state stepped in with 13.5 billion euros and took over the company.
The termination of the gas supply contracts marks the end of an era in which Uniper was heavily dependent on Russian gas. The contracts remained in force despite the lack of deliveries since June 2022. The arbitration court's ruling, made on June 7, was decided according to Swiss law and is legally binding and final.
The outcome of the arbitration proceedings could also accommodate the federal government's plans to sell its shares in Uniper again. Currently, the state holds 99.12 percent of the company. Terminating the burdensome gas contracts could facilitate the sales process.
Already at the beginning of 2023, Uniper's financial situation began to stabilize. The company reported a profit of 4.4 billion euros last year and plans to start repayments to the federal government from 2025.
The decision of the arbitration court is another step in the realignment of the company after a turbulent phase. Uniper had initiated the arbitration proceedings to receive compensation for missed gas deliveries, and Gazprom, for its part, is taking legal action against Uniper in Russia.
Uniper remains optimistic and sees the verdict as an important milestone on the path to a more stable and independent future.
