Uniper Terminates Russian Gas Contracts After Arbitration Win

German utility Uniper has formally ended its long-term gas supply relationship with Russia's Gazprom following a Stockholm arbitration ruling. The company, bailed out by the German government in 2022, was awarded over 13 billion euros in damages. The legal clarity is expected to aid Uniper's return to the stock market.

(Adds CEO comment, context) FRANKFURT, June 12 (Reuters) -

German utility Uniper on Wednesday said it had decided to terminate its dormant Russian gas supply contracts, officially ending its long-term gas supply relationship with Russia's state-owned Gazprom. Uniper said the move was made possible following a June 7 ruling by an arbitration court in Stockholm that also awarded it more than 13 billion euros ($14 billion) in damages for the gas volumes not supplied by Gazprom since mid-2022.

Uniper had to be bailed out by the German government in 2022 after Gazprom, its former main supplier, first cut and later suspended gas deliveries, forcing the German group to buy replacement volumes at sky-high prices on the spot market. "This ruling provides legal clarity for Uniper. With the right of termination that we received in the arbitration ruling, we are ending the contracts with Gazprom Export," Uniper CEO Michael Lewis said in a statement.

Gazprom did not immediately reply to a request for comment. The damage award primarily marks a symbolic victory for Germany, as it is unlikely that large sums will flow, legal sources told Reuters last month, adding the right to terminate dormant contracts would be more relevant ahead of Uniper's planned return to the stock market next year.

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