GAIL Settles Billion-Dollar Claim Against Russian Energy Unit

GAIL (India) Ltd settled a USD 1.817 billion claim against former Gazprom unit, now SEFE, for USD 285 million. The settlement addressed LNG non-delivery under a long-term contract. Western sanctions on Russia affected supply. SEFE claimed force majeure but resumed partial deliveries by 2023.

GAIL (India) Ltd has settled a billion-dollar claim for USD 285 million against its former Russian partner SEFE, as outlined in a stock exchange filing. The claim originated from a long-term contract breach over the non-delivery of liquefied natural gas.

In 2023, GAIL moved legal action to the London Court of International Arbitration, seeking USD 1.817 billion in damages after SEFE halted LNG supplies to the Indian firm in mid-2022 following Western sanctions on Russia.

The resolution involves SEFE paying USD 285 million and the withdrawal of arbitration. Although details remain scant, SEFE resumed limited supplies in 2023 while maintaining a force majeure position.

(With inputs from agencies.)