Bulgarian state gas company Bulgargaz EAD has started arbitration proceedings against Russia's Gazprom, the Bulgarian company reported on July 9 on its website.
In 2023, the Russian gas giant suspended Bulgargaz's long-term contract, which covered 90% of the quantities of natural gas delivered by Bulgargaz to customers.
The Russian company had stopped supplying natural gas to Bulgargaz in April 2022.
Bulgargaz EAD launched proceedings on July 8 at the Arbitration Court of the International Trade Chamber in Paris, according to the statement.
In May, Bulgargaz EAD sent the Russian company a proposal for a voluntary settlement of the Bulgarian company's claim in accordance with their contract. But Gazprom failed to respond.
"After the Russian side did not take action to settle the matter out of court, Bulgargaz took the necessary steps to protect the company's interests," the Bulgarian company said.
Bulgargaz EAD is seeking compensation worth 400 million euros ($432.76 million) because Gazprom breached the contract in 2022 by unilaterally cutting off natural gas supplies, the statement said.
Gazprom's revenue fell by 30% last year with a net loss of $6.9 billion, the largest in 25 years.
According to the Financial Times, Russia's share of European gas imports has dropped from 40% in 2021, the last full year before the invasion, to only 8% in 2023.
In seeking new markets, Russia has been forced to export natural gas at reduced prices.
Alexander Query
(Updated: )
