The Federal Supreme Court of Switzerland has definitively rejected the complaint from Russian “Gazprom” regarding the annulment of the arbitration ruling to pay over 1.4 billion dollars in debt for natural gas transportation services to the benefit of Naftogaz of Ukraine. This is yet another important stage in the prolonged legal confrontation between the Ukrainian and Russian energy companies.
This is reported by Finway
Court Rulings and Financial Consequences
According to the court’s decision, “Gazprom” is obliged not only to repay the principal amount of the debt along with interest but also to pay court costs amounting to 200,000 Swiss francs, as well as to compensate Naftogaz with 250,000 francs for expenses incurred during the proceedings.
“The highest judicial authority in Switzerland has confirmed the validity of the arbitration ruling and has definitively rejected the arguments of the Russian side,” said the company’s chairman, Serhiy Koretsky, adding that Naftogaz will continue to work on enforcing this decision.
The Russian side has not yet provided official comments regarding this decision.
Background of the Dispute and Arbitration Decision
In July 2025, “Gazprom” initiated the procedure to annul the arbitration ruling and filed a request to suspend its enforcement; however, in November of the same year, the Swiss court rejected these demands. Now, after the Supreme Court’s final decision, Naftogaz emphasizes that Gazprom’s complaint has been rejected on the merits.
The dispute arose due to Gazprom’s failure to fulfill contractual obligations under the take-or-pay principle since May 2022, when the Russian company ceased payments for transit. In September 2022, Naftogaz initiated arbitration proceedings, and by June of last year, the tribunal in Switzerland ordered Gazprom to pay the Ukrainian side 1.37 billion dollars.
Take-or-pay is a contractual condition under which the buyer is obliged to pay for a certain volume of gas or its transit regardless of actual usage or transportation.