MOSCOW, January 18 - RAPSI. Gazprom Export has filed an appeal with the International Arbitration Center of the Austrian Federal Economic Chamber to abolish the recent ruling in its dispute with RWE Transgas, the Czech subsidiary of the German RWE, the PRIME business news agency reported on Friday, citing a company statement.
Gazprom Export filed the appeal on January 8.
The International Arbitration Center ruled in favor of RWE Transgas on October 4 in the dispute on the company's obligations under "take or pay" contracts. Gazprom Export said the ruling should be abolished as it contradicts public policy.
"The ruling is biased against Gazprom Export and forces the company to act contrary to European law," the company said in a statement.
"The center confirmed that as part of its long-term gas supply contracts with Gazprom Export, which are tied to oil prices, RWE Transgas can reduce the volumes under its current obligations as part of the 'take or pay' principle," an RWE representative told the news agency earlier. "Gazprom Export filed a lawsuit to receive the payment. We are content with the ruling. This will reduce our financial load arising from this contract, which amounts to a three-digit figure in the millions of euros every year."
Pursuant to the agreement, the contracted volume is 9 billion cubic meters per year. The contract runs until 2035.
In January, Gazprom reported that it adjusted the gas prices in its contracts with GDF Suez (France), Wingas (Germany), SPP (Slovakia), Sinergi Italiane (Italy), and Econgas (Austria) due to market conditions.
It was later reported that the price was cut by 10 percent. Agreements to reduce gas prices were reached with Eni in March and with E.On in July.
In spring, the deputy head of Gazprom and the head of Gazprom Export said Gazprom reduced prices as part of its long-term gas contracts for various European consumers by an average of 10 percent during negotiations.