Kazakhstan will not enforce international arbitration ruling ordering Gazprom to pay $1.4 billion

Kazakhstan will not enforce the international arbitration ruling in favor of Naftogaz ordering Gazprom to pay $1.4 billion.

The ruling in question was issued by an international arbitration court over a dispute concerning the transit of Russian gas through Ukraine. Recently, the court of the Astana International Financial Centre, a special financial zone in Kazakhstan with a separate judicial system operating under British law, authorized enforcement of the ruling on Kazakhstani territory, meaning it ordered the seizure of Gazprom’s assets in favor of Ukraine.

However, Yerlan Sarsembayev, Minister of Justice of Kazakhstan, said this would not happen, as the dispute is not connected to Kazakhstan’s jurisdiction. The minister also stated that the ruling was issued without the participation of the Russian side and is not final.

The dispute between Naftogaz and Gazprom stems from a 2019 contract for gas transit through Ukraine. After transit was halted via the Sokhranivka station in 2022, the Ukrainian company sought compensation.