Ukraine confiscates Gazprom’s joint venture shares
Ukraine seized the shares of Gaztransit (Kyiv), Private Joint-Stock Company owned by the Russian Gazprom, as reported in Gazprom’s quarterly report.
“On May 12, 2017, Gazprom PJSC received through the representative office of Gazprom PJSC in Kyiv resolutions of the Department of the State Executive Service of the Ministry of Justice of Ukraine on the opening of the enforcement proceedings in the amount of UAH 189.13 billion ($7.20 billion USD), including the amount of the execution fee of UAH 17.19 billion ($650 million USD), and the imposition of arrest on shares of Gaztransit belonging to Gazprom PJSC,” the report said.
Gaztransit was established in 1997 to develop gas transit to Turkey and the Balkans. Gazprom and Naftogaz of Ukraine,each own 40.2% of the company, while another 19.6% is owned by Turkish Turusgaz.
Gaztransit is not currently conducting any significant activities and that the transit of Russian gas to Turkey is running normally, RBC news agency reports citing its source in Gazprom.
On January 22, 2016 Anti-Monopoly Committee of Ukraine fined Gazprom UAH 85.97 billion ($3.27 billion USD) for abuse of monopoly position in the gas transit market. The fine payment notice was sent on March 4, 2016 and required Gazprom to pay the fine before May 4, 2016.
The Russian company had not paid by the deadline date, therefore by October 5, when the claim for compulsory collection was filed the fine amount doubled, taking into account the penalty interest.
Gazprom has so far lost all court battles where they challenged the legality of the fine. Gazprom filed a lawsuit with the Stockholm Arbitration against the judgment for fine recovery.