A Swedish court has started hearing Lithuania's action for annulment of a Stockholm arbitration tribunal's ruling in a dispute between the government and Russia's gas giant Gazprom in which the country sought, but was not awarded, 1.4 billion euros in compensation for overpriced Russian natural gas.
Gazprom
© Reuters / Scanpix

The court held its first hearing in the case in early May and continues the proceedings on Tuesday and Wednesday, the Energy Ministry has confirmed to BNS.

The ministry expects the Swedish court of appeal to issue its ruling in mid-2019.

A total or partial annulment of the arbitral award, which cost Lithuania 9 million euros, would open the way for the government to continue to seek that Gazprom compensate consumers for overcharging them. The damage is preliminary estimated at 1.5 billion euros.

Active preparations for the proceedings took more than two years.

Some professionals earlier were skeptical about Lithuania's chances of securing an annulment of the ruling by the Arbitration Institute of the Stockholm Chamber of Commerce, saying it was more a theoretical possibility and an attempt to exhaust all possible legal means. Some of them believed that Lithuania thus aimed to reach an amicable settlement of the dispute.

Following a four-year legal battle, the arbitration tribunal ruled in June 2016 that Gazprom had a conflict of interest in acting as both a shareholder of Lietuvos Dujos (Lithuanian Gas) and a supplier of gas to Lithuania, but it did not award the compensation sought by Lithuania.

"Due to the complex evidentiary process and the abundance of data, the arbitral tribunal was reluctant to pronounce upon the extent of damage caused to Lithuania," the Energy Ministry said in press release back in 2016.

"The arbitral tribunal noted that the notion of 'fair price' is too general to measure possible damage," it said.

Lithuania brought the action for annulment in September 2016.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Changes in option taxation prepared

The Parliament of the Republic of Lithuania approved an amendment to the Law on Personal Income Tax...

Finance Minister: we need to finish started work

Lithuania's Finance Minister Vilius Sapoka has so far declined to say if he plans to continue...

US experts checking Lithuania's egg producer

US experts have on Monday started inspecting Lithuania's egg producer Baltic Egg Production , part of...

Lithuania plans to set aside funds for deep radioactive waste repository

Lithuania plans to start accumulating funds to build a deep repository for spent radioactive waste...

Available office space in Vilnius is set to double in coming years

In recent years the average vacancy rate for offices in Vilnius has been about 3 percent, one of...