Oxford – The Uniper-Gazprom Arbitration Ruling

The EU-Russia gas relationship faced tension following the Russian invasion of Ukraine in February 2022. Russia required buyers from "unfriendly" countries to pay for gas in roubles from April 2022, leading to arbitration cases against Gazprom. In November 2022, a tribunal ruled in favor of Gazprom in the Gasum arbitration due to force majeure. A second wave of arbitrations began in June 2022, involving Uniper, RWE, Engie, ENI, and CEZ, over reduced gas deliveries through Nord Stream. The recent ruling in the Uniper-Gazprom arbitration terminated long-term supply contracts and could have significant implications for European gas markets. The decision may increase confidence in LNG suppliers as EU countries may seek alternative gas sources amid sanctions on Russian LNG. While the ruling is not yet public, this commentary is based on publicly available information.