Kazakhstan court throws wrench in Ukraine's plan to collect $1.4 billion from Russia's Gazprom
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A Kazakhstan court has overturned a previous ruling recognizing and enforcing the recovery of approximately $1.4 billion from the Russian gas giant Gazprom in favor of the Ukrainian state-owned energy company Naftogaz, Forbes Kazakhstan reported on July 8.
The Court of the Astana International Financial Center (AIFC) ruled on July 7 that the case fell outside its jurisdiction, setting aside an earlier decision in May 2026.
The dispute between Naftogaz and Gazprom goes back several years. Naftogaz launched proceedings against Gazprom in 2022, after the Russian company refused to fully pay Naftogaz for transiting Russian gas via an alternative route amid logistical challenges caused by Russia's full-scale invasion, which violated contractual obligations.
An international court awarded $1.37 billion in debt to Naftogaz in June 2025. Gazprom attempted to annul the arbitration award, but a Swiss International Commercial Court (ICC) ruled in favor of Naftogaz in March 2026.
The court also ordered Gazprom to pay additional costs to cover court fees and other costs, bringing the total to over $1.4 billion.
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Kazakhstan's AIFC initially recognized and enforced the ruling on May 15, 2026, establishing a legal mechanism to recover the funds from the company within Kazakh territory. Days after that decision, Kazakhstan's Justice Ministry said it would not enforce the collection.
The AIFC has now overturned its earlier ruling altogether, saying the court lacked the authority to enforce an ICC arbitration award rendered outside Kazakhstan and the AIFC arbitration system.
The ruling represents another legal setback in a years-long battle that has already seen numerous international arbitration proceedings. Ukraine hopes to recover a total of $6.9 billion in arbitration damages from Gazprom, President Volodymyr Zelensky said in July 2025. The sum includes $5 billion in losses that Naftogaz sustained during Russia's occupation of Crimea in 2014.
Under international law, arbitration awards can be enforced in multiple jurisdictions through domestic courts. If a defendant's state fails to pay voluntarily, creditors can seek to seize foreign-held assets to satisfy the judgment.
Naftogaz, Ukraine's largest energy firm, lost critical infrastructure, natural gas reserves, and service networks in Crimea after Russia's illegal annexation. Its case against Russia became one of the most high-profile corporate arbitration claims against Russia following the start of the war in 2014.
