The nationalized energy group Uniper has drawn a final line under the dispute over gas supplies with the Russian state-owned company Gazprom.

Uniper prevailed in arbitration proceedings and then terminated the contracts, Uniper announced on Wednesday. The contracts with Gazprom were still in force, although gas had only been flowing to a limited extent since June 2022 and no more since the end of August 2022. Because Gazprom had turned off the gas tap in mid-2022, the court based in Stokholm also awarded Uniper a claim for damages amounting to more than 13 billion euros. However, it remains to be seen whether this money will be paid out. Any payments would go to the federal government. "This ruling creates legal clarity for Uniper," said Uniper CEO Michael Lewis.

Uniper had initiated the multi-billion euro arbitration proceedings against Gazprom in Stockholm following the Russian invasion of Ukraine and the subsequent Russian gas supply freeze in 2022. The Düsseldorf-based utility demanded compensation because Uniper had to procure expensive replacements for the missing supplies from Russia at short notice. This brought Uniper to the brink of bankruptcy before the Düsseldorf-based company was almost completely taken over by the state. Gazprom, for its part, is taking legal action against Uniper in Russia.

According to Uniper, the arbitration court in Stockholm made its decision on June 7. The court ruled in accordance with Swiss law. The arbitration ruling is legally binding and final, Uniper explained. The possibility of dispute resolution via an arbitration tribunal had been contractually agreed with Gazprom. It had already been used repeatedly by both sides in the past.

The termination of the supply contracts could also play into the hands of the federal government in its plans to float Uniper shares on the stock exchange again. This is because the old gas contracts could have become a burden. "With the right of termination that we received with the arbitration ruling, we are terminating the contracts with Gazprom Export," emphasized Lewis. Preparations are currently underway to gradually bring the 99.12 percent stake held by the federal government in Uniper back onto the stock exchange floor.

(Report by Anneli Palmen and Matthias Inverardi, edited by Sabine Wollrab. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).