The International Financial Centre Astana (IFCA) recently ruled in favor of Naftogaz of Ukraine in its arbitration case against Russian energy giant Gazprom. However, Kazakhstan’s Minister of Justice, Erlan Sarsembayev, announced that this ruling will not be enforced within the country.
Sarsembayev clarified that the court’s decision was made unilaterally, without the participation of Gazprom, and therefore lacks legal force. He emphasized that this is not a final ruling and serves only as a notification. Gazprom retains the right to appeal the decision, which would lead to a comprehensive examination of the case involving both parties.
The Minister further explained that Kazakhstan’s legal framework does not allow for the enforcement of decisions that are not connected to its jurisdiction or the IFCA. He stated, “The Republic of Kazakhstan will not become a transit hub for enforcing decisions that lack legal ties to it.” This indicates that the IFCA’s ruling will not be executed on Kazakh territory.
When asked why the case was heard at the IFCA, Sarsembayev noted that any party has the right to approach the court, but this does not guarantee that the court has the appropriate jurisdiction. He reiterated that the proceedings at the IFCA are still ongoing and that a final decision will be made after both parties present their arguments. Additionally, he mentioned that changes are being made to the legislation concerning the recognition and enforcement of foreign arbitration awards within the country.
The IFCA had previously recognized and allowed the enforcement of an arbitration award against Gazprom, amounting to over $1.4 billion in favor of Naftogaz. This case revolves around the transit of Russian gas, which Naftogaz was contracted to perform under a 2019 agreement that was set to last until January 1, 2025. However, the full-scale Russian aggression in May 2022 disrupted transit through the designated entry point, Sokhranivka.
Despite these challenges, Naftogaz continued to provide transit services through another point, Sudzha. Gazprom, however, refused to pay the full amount due for these services. In June 2025, an international arbitration tribunal in Switzerland ordered Gazprom to pay $1.37 billion to Naftogaz, citing violations of contractual obligations under the take-or-pay principle, which requires Gazprom to pay for gas regardless of whether it is taken or not. Naftogaz initiated arbitration in September 2022 due to Gazprom’s failure to meet its payment obligations.
In March 2026, Naftogaz announced its final victory in the Swiss court, solidifying its position in the ongoing dispute.
Kazakhstan's Justice Minister announced that the IFCA's ruling in favor of Naftogaz against Gazprom will not be enforced in the country, citing jurisdictional issues. The case remains unresolved as Gazprom retains the right to appeal, and ongoing legislative changes may impact future arbitration enforcement.