Bulgargaz, has initiated arbitration proceedings against Gazprom Export at the International Chamber of Commerce (<span class="news-text_medium">ICC</span>) Court of Arbitration in Paris. Bulgargaz is seeking over €400 million in damages for Gazprom's unilateral suspension of natural gas supplies to the company in April 2022.
The dispute stems from a long-term gas supply contract between Bulgargaz and Gazprom Export that covered 90% of Bulgaria's natural gas needs. In 2015, Gazprom suspended this contract, and then stopped supplying gas to Bulgargaz altogether in late April 2022.
In May 2022, Bulgargaz sent an invitation to Gazprom Export to voluntarily settle the claim under the terms of their contract. However, Gazprom did not respond, prompting Bulgargaz to take legal action to protect its interests.
Bulgargaz has filed the case with the ICC Court of Arbitration in Paris, one of the world's leading institutions for resolving international commercial disputes, demanding over €400 million in compensation for the gas it was unable to deliver to customers due to Gazprom's suspension of supplies.
The dispute underscores the challenges faced by European energy companies following suspension of gas supplies.
With the case now being handled by the ICC's arbitration court, the legal proceedings between the two state-owned energy companies are set to be closely monitored. The outcome could have important implications for other European nations seeking to address losses from the disruption of energy supplies.
