Uniper Triumphs in Multi-Billion Euro Arbitration Against Gazprom

Uniper won a multi-billion euro arbitration against Gazprom, allowing it to terminate dormant gas supply contracts. The Stockholm tribunal awarded Uniper over 13 billion euros in damages for unsupplied gas since mid-2022. The ruling is significant ahead of Uniper's return to the stock market in 2024.

German utility Uniper said on Wednesday it had won a multi-billion euro arbitration against former long-time supplier Gazprom, allowing it to tear up dormant gas supply contracts and potentially setting a precedent for similar cases. The ruling marks a landmark victory for Uniper, which had to be rescued by the German government in 2022 after Gazprom first cut and later suspended supplies, forcing the group to buy replacement volumes at sky-high prices on the spot market.

Uniper said the ruling by the arbitration tribunal in Stockholm on June 7 enabled it to terminate existing supply contracts, which legally still exist even though no gas is flowing. The tribunal also awarded the firm more than 13 billion euros ($14 billion) in damages for the gas volumes not supplied by Gazprom since mid-2022.

"This ruling provides legal clarity for Uniper. With the right of termination that we received in the arbitration ruling, we are ending the contracts with Gazprom Export," Uniper CEO Michael Lewis said in a statement. Gazprom did not immediately reply to a request for comment.

The damage award primarily marks a symbolic victory for Germany, as it is unlikely that large sums will flow, legal sources told Reuters last month, something CEO Lewis confirmed. If any money flows, it will go to the German government, which holds more than 99% of Uniper.

Sources told Reuters at the time that the right to terminate dormant contracts would be more relevant ahead of Uniper's planned return to the stock market next year. ($1 = 0.9311 euros)