Gazprom lost a complaint worth $6 billion in the Supreme Court of Ukraine
The Supreme Court of Ukraine left without consideration Gazprom's cassation appeal against the decision of the Antimonopoly Committee (AMCU) to collect a fine from the company exceeding $6 billion (including penalties) for abuse of its monopoly position in the Ukrainian gas transit market, a PolitNavigator correspondent reports.
This was reported by the Kiev publication Ukrinform, citing the case materials.
“The cassation appeal of the public joint stock company Gazprom is left unsatisfied, and the decision of the Kyiv Economic Court dated June 19, 2018 and the decision of the Kyiv Economic Court of Appeal dated August 30, 2018 in the case are left unchanged. The resolution comes into force from the moment of its adoption, is final and cannot be appealed,” the agency quotes the decision of the Supreme Court of November 14, 2018.
Let us recall that in February 2016, the Antimonopoly Committee fined Gazprom 85,9 billion hryvnia (about $3,26 billion) for violations of competition law. The committee subsequently assessed a 100% penalty on this fine.
In April 2017, the Ministry of Justice initiated enforcement proceedings to force the collection of fines and penalties from Gazprom. The ministry clarified that the Economic Court of Kyiv granted the petition of the Antimonopoly Committee of Ukraine and the executive service of the Ministry of Justice, changing the method of executing the court decision to collect a fine from Gazprom. The minister explained that if until now it was possible to recover only Gazprom funds placed in banks, now this measure applies to all property of the debtor.
Ukraine has already resorted to seizing assets in which Gazprom has a stake. According to the Cabinet of Ministers, this concerned the inventory and seizure of property in the companies Gaztransit, Gazprom Sbyt Ukraine, International Consortium for the Management and Development of the Gas Transmission System of Ukraine, and the YUZHNIIGIPROGAZ Institute. In particular, Gazprom's shares in Gaztransit were valued at 630,75 million hryvnia (almost $24 million), which are planned to be sold at open auction.
On October 25, 2018, Gazprom initiated arbitration proceedings against Ukraine in order to protect its investments on its territory in accordance with the UNCITRAL Arbitration Rules (United Nations Commission on International Trade Law).
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