2020.02.17 14:05

Lithuania loses billion-euro case against Russia's Gazprom

BNS 2020.02.17 14:05

Lithuania failed to claim 1.4 billion euros from Russia's Gazprom after a Swedish court ruled in the latter's favour, according to Gazprom's report published this month.

"The court did not provide the motives for its decision," Lithuania's Energy Ministry told BNS, confirming the claim by Gazprom.

The Stockholm arbitration court ruled in June 2016 that Gazprom had a conflict of interest by both being the shareholder of the country's dominant gas company, Lietuvos Dujos, as well as the main gas supplier to the country.

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Although, the court did not award the compensation of around €1.4 billion sought by Lithuania for the gas it said was supplied at inflated prices by Gazprom in 2004-2012 due to its dominant position in the market.

Lithuania appealed the arbitration ruling with the Swedish Court of Appeal, and the latter refused to change it in July last year, forcing Lithuania to turn to the Supreme Court, which in late December upheld the arbitration court's ruling.

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The eight-year litigation at the Stockholm arbitration and other Swedish courts cost Lithuania around €10.5 million. Around €9.5 million were spent on legal services in 2012–2016, and around €950,000 in 2016–2019 when Lithuania appealed the arbitration ruling with Swedish courts, the ministry said.

In the dispute with Gazprom, Lithuanian was represented by Shearman & Sterling, one of the major law firms in the world based in the US, as well as Lithuanian lawyers from Lawin and Tark Grunte Sutkienė.

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