Uniper to Terminate Long-Term Russian Gas Supply Contracts

SEATTLE (Oil Monster): Uniper, in an announcement made yesterday, noted that it has decided to terminate its long-term Russian gas supply contracts. With this, Uniper will legally end its relationship with Russian Gazprom Export, thus putting an end to all pending contracts, some of which extend until mid-2030s.

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During last week, the arbitration tribunal, in a ruling issued, had granted the company the rights to proceed with termination of contracts. Furthermore, it had granted nearly €13 billion in damages on account of gas volumes not supplied by Gazprom Export since mid-2022. It must be noted that the Russian company had substantially cut its gas delivery volumes since June 2022, before announcing complete halt of deliveries by end-August 2022.

The contract between the two parties had stipulated the use of arbitration as a means of resolving mutual disputes. Accordingly, Uniper had initiated arbitration proceedings by end-2022.

Commenting on the decision, Michael Lewis, CEO of Uniper noted that the decision to terminate the contracts marks the culmination of a series of strategic actions taken by it over the past three years. Over this period, Uniper has been broadening its gas operations, ensuring gas supplies from other regions, he added.