NBU allows Naftogaz to conduct foreign currency transactions abroad to enforce arbitration awards

The relevant transactions by Naftogaz must be approved by the Cabinet of Ministers of Ukraine.
As reported, in December 2012 the Stockholm Arbitration Tribunal ruled on the claim of Italia Ukraina Gas S.p.a. (IUGAS, Italy) to impose a fine of $12.7 million on Naftogaz of Ukraine for failure to fulfil its obligations under the natural gas supply contract concluded in 2003.
The terms of the agreement between Naftogaz and Italia Ukraina Gas provided for gas supplies in the period from January 1, 2004, to December 31, 2013, in the amount of up to 1.3 bcm per year at a fixed price of USD 110/tcm.
Earlier, Naftogaz noted that the contract with IUGAS was signed by the then Deputy Chairman of the Board of the NJSC Ihor Voronin without the necessary approvals, and the Italian citizen Marco Marenko, who owned IUGAS at the time of the deal conclusion, was later convicted in his home country for fraud and tax evasion.
According to Naftogaz, in December 2020, the company again became a party to the proceedings in the Stockholm Arbitration regarding the execution of the above agreement with claims of approximately $110 million, and on August 29, 2024, the claims were partially satisfied. As of September 30, 2024, the company has reserved collateral for the execution of the decision in the amount of UAH 1.983 billion.
In October 2024, the creditor initiated enforcement proceedings in the Swiss Confederation under the arbitral award, which encumbered the property of Naftogaz.