In January 2009, Swiss-based gas trader RosUkrEnergo commenced two arbitrations at the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) against Ukrainian national stock company Naftogaz. The first claim is for the recovery of over US$600 million of debt from Naftogaz, whilst the second concerns compensation for damages. RosUkrEnergo claims Naftogaz has failed to honour its obligations under the contract with RosUkrEnergo AG for the lifting and transportation of natural gas from underground gas terminals, thus disrupting the transit of RosUkrEnergo AG-owned natural gas to the European Union.

On 24 March 2009, the tribunal in Stockholm held its first hearing. The proceedings are still ongoing and we will continue to report on future developments.