$1.37 Billion for Gas Transit: Gazprom Loses Appeal in Switzerland
Economy
Switzerland’s Federal Supreme Court has rejected Gazprom’s appeal and upheld an international arbitration ruling ordering the Russian energy giant to pay $1.37 billion to Ukraine’s Naftogaz in a dispute over gas transit.
The Federal Supreme Court of Switzerland has dismissed an appeal by the Russian energy company Gazprom against an arbitration ruling requiring it to pay $1.37 billion to Ukraine’s state energy company Naftogaz. The development was reported by the specialized publication Global Arbitration Review.
The dispute stems from a five-year contract signed in 2019. Under its terms, Naftogaz was responsible for ensuring the transit of Russian gas to Europe through Ukrainian territory, while Gazprom was obliged to pay for the transit regardless of the actual volumes transported.
After the start of the full-scale war, gas flows through Ukraine dropped sharply, and Gazprom began paying only for the volumes that were actually transported.
Naftogaz considered this a breach of the contract and filed a claim with an international arbitration tribunal.
In June 2025, the arbitration court ruled in favor of the Ukrainian company. The Swiss Federal Supreme Court has now upheld that decision, ordering Gazprom to pay the outstanding amount along with interest and legal costs.
The transit contract between Naftogaz and Gazprom remained in force until December 31, 2024. Despite the war, Russian gas continued to flow through Ukraine until the agreement expired.
Naftogaz had previously stated that it did not terminate the contract earlier because European countries still needed Russian gas at the time. After the agreement expired, the Ukrainian company chose not to extend it.
The dispute stems from a five-year contract signed in 2019. Under its terms, Naftogaz was responsible for ensuring the transit of Russian gas to Europe through Ukrainian territory, while Gazprom was obliged to pay for the transit regardless of the actual volumes transported.
After the start of the full-scale war, gas flows through Ukraine dropped sharply, and Gazprom began paying only for the volumes that were actually transported.
Naftogaz considered this a breach of the contract and filed a claim with an international arbitration tribunal.
In June 2025, the arbitration court ruled in favor of the Ukrainian company. The Swiss Federal Supreme Court has now upheld that decision, ordering Gazprom to pay the outstanding amount along with interest and legal costs.
The transit contract between Naftogaz and Gazprom remained in force until December 31, 2024. Despite the war, Russian gas continued to flow through Ukraine until the agreement expired.
Naftogaz had previously stated that it did not terminate the contract earlier because European countries still needed Russian gas at the time. After the agreement expired, the Ukrainian company chose not to extend it.
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