Ukraine’s Naftogaz has secured a final victory in a dispute with Russian energy giant Gazprom over a $1.4 billion debt related to gas transit services.
According to a company statement, the Swiss Federal Supreme Court definitively rejected Gazprom’s appeal to overturn an arbitration ruling from June 16, 2025, which mandates that Gazprom pay Naftogaz more than $1.4 billion for the transportation of natural gas and accrued interest.
The court likewise ordered Gazprom to cover CHF 200,000 in court costs and compensate Naftogaz CHF 250,000 for expenses incurred at the Federal Supreme Court. This ruling solidifies the financial implications of the ongoing energy dispute between the two nations.
“the Swiss Federal Supreme Court confirmed the validity of the arbitration decision and finally rejected the arguments of the Russian side,” said Sergiy Koretsky, CEO of Naftogaz. “Naftogaz will continue to work to enforce this decision and is pursuing several other cases against the aggressor state.”
Naftogaz was responsible for facilitating the transit of Gazprom’s natural gas through Ukraine until the expiration of their contract on January 1, 2025. Following the escalation of the conflict and the suspension of transit through the Sochranivka border point, gas continued to flow through the Sudzha point. Despite this, Gazprom failed to fully settle its outstanding payments for transit services, violating its contractual obligations.
Naftogaz initiated arbitration proceedings against Gazprom in September 2022, centering on unpaid fees for organizing the transit of natural gas through Ukrainian territory. The dispute underscores the complexities of energy contracts and international arbitration in the context of geopolitical tensions.
As previously reported, the International Arbitration Court in Switzerland awarded Naftogaz $1.37 billion from Gazprom in June 2025.
