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“.

Dairy producers start feeling impact of rising US export duties

Lithuanian dairy producers say they have already felt the impact of duties , rising as of Friday,...

Nauseda doesn't expect EU budget deal by end of 2019

EU member states differ too much in their positions on the bloc's next multi-annual budget to...

Dairy products subject to 25 pct US import tariff

Lithuanian cheeses, yoghurts and other dairy products are now subject to a new 25-percent import...

Nauseda: everybody thinks about plan B despite Brexit deal (1)

The European Union is weighing all options of possible action if the British parliament rejects the...

Nauseda: EU will approve Brexit deal, doubts remain on UK parliament

EU leaders will likely to smoothly approve the recently-reached Brexit deal on Thursday but doubts...