RT.com
06 Dec 2022, 04:13 GMT+10
RWE reportedly wants more than $400 million in compensation for missing gas supplies
German energy company RWE has launched arbitration proceedings against Russia's state-owned oil and gas giant Gazprom over allegedly undelivered volumes of gas, the firm's spokesman told the Handelsblatt newspaper on Monday.
Although RWE's reliance on supplies from Gazprom was relatively low and was due to cover 15 terawatt hours (TWh) by next year, experts say the company may seek hundreds of millions of dollars in compensation for missing deliveries, which were reportedly reduced by 4 TWh.
In June, an analyst from Stifel Research, Martin Tessier, wrote that "in the event of a full cut of supply, we calculate that the replacement of the remaining 4 TWh could cost at least an additional €400 million ($422 million)."
The RWE spokesman didn't provide any details on the legal process. The move comes shortly after Germany's largest gas importer, Uniper, sued Gazprom, claiming losses in the billions of euros after the Russian energy major reduced supplies.
The company, which is due to be nationalized soon, says replacing Russian gas has cost it around €11.6 billion ($12 billion) so far, a figure that is expected to grow until the end of 2024.
Russia's Gazprom Export confirmed that Uniper had initiated arbitration proceedings but said that it does not recognize the violation of contracts or the legitimacy of the claims for damages. The company has not yet commented on RWE's lawsuit.
Russia attributed the reduction in gas deliveries to the maintenance of turbines on the Nord Stream 1 pipeline by Germany's Siemens being interrupted due to Western sanctions on Moscow. A section of the pipeline was then blown up in September, rendering it inoperable.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of St Petersburg Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to St Petersburg Star.
More InformationWASHINGTON D.C.: US lawmakers have called on the Department of Energy to release documents detailing attempts by Russian hackers to ...
MOSCOW, Russia: Russian state-run TASS news agency has reported that a US woman was detained and fined by a Russian ...
Nearly a year in, the war in Ukraine has cost tens of thousands of lives and brought the world to ...
BOSTON, Massachusetts: Russian businessman Vladislav Klyushin, who has ties to the Kremlin, has been accused of making tens of millions ...
Rescue operations are now a ?race against time,? says the World Health OrganizationThe number of confirmed deaths from the 7.7 ...
While criticizing Moscow, Josep Borrell predictably insulted Africa, Russia's foreign minister saidDismissing African countries as easy to manipulate is 'on ...
WASHINGTON, DC - The global community has extended aid to Turkey and Syria following the devastating earthquakes that hit the ...
WASHINGTON D.C.: US lawmakers have called on the Department of Energy to release documents detailing attempts by Russian hackers to ...
Photo credit: Ercin Erturk / Anadolu AgencyThe death toll from Monday's massive 7.8 magnitude earthquake in Turkey and Syria has ...
WASHINGTON D.C.: In a sign of future political battles over record numbers of illegal crossings under Democratic President Joe Biden, ...
MOSCOW, Russia: Russian state-run TASS news agency has reported that a US woman was detained and fined by a Russian ...
ISLAMABAD, Pakistan - Former President General (retd) Pervez Musharraf died in a Dubai hospital on Sunday at the age of ...