The Federal Supreme Court of Switzerland has rejected Gazprom’s appeal to annul an arbitration ruling mandating the Russian company to pay Naftogaz over $1.4 billion for natural gas transportation services, along with interest. This decision was confirmed by a statement from the Ukrainian company.
In addition to the payment, the court ordered Gazprom to cover legal fees amounting to 200,000 Swiss francs and to reimburse Naftogaz for 250,000 Swiss francs in expenses incurred during the proceedings.
“The highest judicial authority in Switzerland has reaffirmed the validity of the arbitration ruling and definitively dismissed the arguments from the Russian side,” stated Naftogaz CEO Serhiy Koretsky. He further noted that Naftogaz will continue to pursue enforcement of this ruling.
As of now, Gazprom has not publicly commented on the court’s decision.
In July 2025, Gazprom initiated proceedings to annul the arbitration ruling and concurrently requested a suspension of the ruling’s enforcement until the case was resolved. However, in November 2025, the Swiss Supreme Court denied the request for suspension. Naftogaz indicated that the court has now fully dismissed Gazprom’s appeal.
Last June, an international arbitration tribunal in Switzerland ordered Gazprom to pay $1.37 billion to Naftogaz. According to Naftogaz, Gazprom breached its contractual obligations under the take-or-pay principle starting in May 2022, ceasing payments altogether. This led Naftogaz to initiate arbitration proceedings in September 2022.
The take-or-pay clause requires the buyer to pay for a specified volume of gas or gas transit regardless of the actual amount purchased or transported.
The Swiss Supreme Court has upheld an arbitration ruling requiring Gazprom to pay Naftogaz over $1.4 billion. This ruling reinforces Naftogaz's position in ongoing disputes regarding gas transportation contracts.