Hungarian gas company files lawsuit against Naftogaz, complaint against Ukraine (2)

Friday, January 9, 2009 03:24:00 PM

(Updates with comments by Russia's top officials)
Emfesz, Hungary's second-largest natural gas importer, has filed a lawsuit against Ukrainian gas company Naftogaz and launched complaint against Ukraine at the European Union court in Luxembourg to get its money back. The Hungarian company is the first in the 27-member bloc to launch legal salvo against Kiev that chocked natural gas transmission to Europe amidst a pricing war with Russia.

Vienna-based law firm Wolf Theiss on Thursday evening (8 January) filed a complaint at the EU court in Luxembourg on behalf of Hungarian gas provider Emfesz against Ukraine state onwned gas transit company Naftogaz, EUobserver reported on Friday.

Emfesz (First Hungarian Natural Gas and Energy Trading and Service Provider Ltd.) has also filed a second lawsuit against Naftogaz in a Budapest court, “in what could signal the start of a domino effect of legal challenges to recoup lost income by EU companies."

The Hungarian company has a supply contract with Swiss-registered RosUkrEnergo, which re-sells Russian gas to Naftogaz. The complaint alleges that RosUkrEnergo owns gas which is being held in Naftogaz storage tanks and which Naftogaz has failed to deliver to RosUkrEnergo customers, Euobserver added.

Emfesz is responsible for 20% of Hungary's gas market and for heating 100,000 households. The size of its financial loss is hard to calculate as the gas crisis continues to unfold in its ninth day.

Fruitless talks
Naftogaz Chairman Oleh Dubyna said today that gas negotiations with Gazprom had not made progress so far.
“Considering and evaluating events of the last two days, I would like to note that the negotiations with our Russian colleagues have not had any progress to the moment. This fact gave an impression that Gazprom OJSC's representatives have not had appropriate authorities and a mandate to sign any contracts with the NJSC “Naftogaz of Ukraine" delegation," Dubyna said in a statement.

“The negotiations are fruitless for the time being, the Russian delegation appeared to be unready for the talks to go on."
“We believe that the Russian party will be relevantly commissioned to continue the negotiations and take the constructive position in order to find out the mutually beneficial resolution and to sign the corresponding long-term contracts," he added.

Give and take continues

Russian President Dmitry Medvedev instructed the Russian energy giant Gazprom on Friday that gas supplies to Ukraine should be resumed only after the necessary documents are signed, Russian newswire RIA Novosti reported.

"Of course we are interested in gas transit resumption as soon as possible. But nevertheless I would like you to be guided by my instruction in solving this task: all these actions could be performed only after the documents are signed," Medvedev was cited as saying at a meeting with Gazprom CEO Alexei Miller.

"We will never stop the theft by any other means," the Russian president added. "Unfortunately, [we] have no more trust in the Ukrainian side."

Miller said the necessary document that would guarantee Russian gas transit through Ukraine could be signed on Friday, and deliveries will resume “almost at once".

The European Commission's energy spokesman Ferran Tarradellas Espuny said however Ukraine will be able to ensure gas transit to Europe in 36 hours after Russia resumes gas supplies.

He said that Russia could start delivering gas in 13 hours and the Russian gas would reach the EU member states in at least three days.

Medvedev also said Russia should not give preferences to Kiev regarding gas prices. “Ukrainians should pay as much as Europeans do," he said.

Gazprom earlier offered Ukraine a price of USD 250 per 1,000 cubic metres for gas in 2009, about half the current average price in Europe. Ukraine, which paid USD 179.5 last year, said it was prepared to pay USD 200-235 per 1,000 cm. After the refusal, Gazprom said the price could be USD 418.

Russian Prime Minister Vladimir Putin said yesterday that said Moscow was ready to pay market price for gas transit via Ukraine and Ukraine should also pay market price for Russian supplies.

http://www.portfolio.hu/en/cikkek.td...