By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) -Uniper has appealed a Russian court decision requiring the German utility to pay more than 14 billion euros ($15 billion) if it continues arbitration proceedings against its former main gas supplier Gazprom, it said on Tuesday.
The two companies had a decade-long business relationship until Moscow’s war on Ukraine essentially severed ties between Russia and Germany.
A court in St Petersburg issued the ruling in March in response to Uniper’s claim for damages filed with a Swedish arbitration tribunal after Gazprom stopped supplies in 2022, ultimately leading to Uniper’s nationalisation.
“Uniper considers the court decision to be a violation of international law and the principle of a fair trial and has filed an appeal against the ruling in Russia,” Uniper said in its first-quarter report, which showed a 11% drop in core profit.
The company said that the ruling would allow Gazprom to seize Uniper assets in Russia and possibly outside the country, adding it was currently reviewing further legal steps.
Uniper has already entirely written off its Russian business, which includes 250 terawatt hours worth of dormant gas supply contracts with Gazprom as well as a majority stake in local subsidiary Unipro.
Sources told Reuters last week that the contracts, which legally still exist even though no gas is flowing, could create a hurdle to Uniper’s possible return to the stock exchange, something sources say is targeted for 2025.
Uniper’s Chief Financial Officer Jutta Doenges told analysts that the arbitration tribunal’s decision, which is expected in the summer, should help Uniper “further clarify” its future position in relation to the contracts with Gazprom.
First-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled 885 million euros ($953 million), Uniper said, confirming its 2024 target of 1.5 billion to 2.0 billion euros.
($1 = 0.9296 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Andrey Sychev, Kirsten Donovan)
