The Swiss Federal Supreme Court has fully rejected Russian Gazprom’s request to annul the June 16, 2025, arbitration ruling, under which Gazprom is required to pay Naftogaz over $1.4 billion for gas transit services, plus interest.
Additionally, the court ordered the Russian company to cover CHF 200,000 in court costs and compensate Naftogaz CHF 250,000 for expenses incurred in proceedings before the Federal Supreme Court.
Recall that in July 2025, Gazprom initiated proceedings to annul the arbitration award and simultaneously requested a suspension of its enforcement pending the case. In November 2025, the Swiss Federal Supreme Court denied the request to suspend enforcement. Now, the court has fully dismissed Gazprom’s complaint on the merits.
Thus, Switzerland’s highest judicial authority has confirmed the validity of the arbitration award and definitively rejected the Russian side’s arguments.
“Naftogaz will continue working to enforce this ruling and is pursuing a series of other legal actions against the aggressor country,” said Serhiy Koretskyi, Chairman of Naftogaz.
Naftogaz was represented in the annulment proceedings by its long-term legal advisers from Gabriel Arbitration, Wikborg Rein, Nybron, and Bono Legal.
Background:
Under the 2019 Gas Transit Agreement, Naftogaz was obligated to organize the transit of Russian gas through Ukraine until the agreement expired on January 1, 2025.
In May 2022, Russian occupation forces made transit through the “Sokhranivka” entry point impossible. Nevertheless, Naftogaz continued providing the agreed transit services via the “Sudzha” entry point. Despite this, Gazprom refused to fully pay for the gas transit services, breaching its contractual obligations.
In September 2022, Naftogaz initiated arbitration in Switzerland under the International Chamber of Commerce (ICC) Rules, as provided in the agreement.
In June 2025, the arbitration tribunal seated in Switzerland issued a final award, holding Gazprom fully responsible for failing to meet its payment obligations and finding no legitimate grounds for non-payment. The tribunal required Gazprom to pay the transit service debt, interest, and arbitration costs.
