The Federal Supreme Court of Switzerland has refused to allow Russia's Gazprom to annul an arbitration award, according to which the company must pay more than $1.4 billion to Naftogaz of Ukraine.
The court completely rejected the Russian company's application regarding the international arbitration award of June 16, 2025. The arbitration tribunal previously ruled that Gazprom must pay Naftogaz the debt for services for organizing the transportation of natural gas, as well as accrued interest.
In addition, the Federal Supreme Court ordered the Russian company to pay legal costs of 200,000 Swiss francs. Gazprom must also compensate Naftogaz for another 250,000 Swiss francs in costs incurred during the Supreme Court proceedings.
The Russian company tried to appeal the arbitration decision. In July 2025, Gazprom filed an application to have it annulled and at the same time asked the court to suspend the execution of the decision until the case was concluded.
However, in November 2025, the Swiss court refused to suspend the execution of the decision. After considering the merits of the case, the court finally rejected the Russian company's complaint.
The arbitration dispute between Naftogaz and Gazprom arose due to underpayment under the transit contract. In September 2022, the Ukrainian company appealed to international arbitration for violation of the terms of the contract.
In June 2025, an arbitration tribunal in Switzerland ruled in favor of Naftogaz, obliging Gazprom to pay the Ukrainian side $1.37 billion.
Amid this dispute, the volume of Russian gas transit through the Ukrainian gas transportation system has been sharply reduced. In particular, in June 2022, transit to Europe fell to a historic low of 1.25 billion cubic meters, which is three times less than in the same period in 2021.
At the end of 2021, the total volume of Russian gas transit through the Ukrainian gas transportation system to Europe decreased by 25.4% to 41.6 billion cubic meters.
