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Naftogaz goes bankrupt in case of loss to Gazprom in Stockholm court

The Russian company will not be able to recover the full amount of the claim.

In the case of losing the case filed by the Russian Gazprom in the Stockholm court, Naftogaz will bankrupt, says the company's commercial director, Yuri Vitrenko.

He said although the chances to lose were quite low, Ukraine will not be responsible for the obligations of Naftogaz.

"Naftogaz would go bankrupt, so in the process of liquidation of Naftogaz our assets will be sold and creditors will queue to recover their funds," Vitrenko said during a video interview with the publication New Time.

Vitrenko said Ukraine's gas transportation system will not be penalized, since it is owned by the state, while Naftogas licences on the extraction of hydrocarbons under the law cannot be given over to a third party.

"What can be taken from Naftogaz are some old buildings, old drilling equipment, old cars, but the value of all these assets is much lower than $ 50bn of Gazprom's claims. In addition, we have other creditors, which in case of bankruptcy will want to get their money back."

"In any event Gazprom will hardly get any financial resources, even if we lose," he said.

Gazprom's total claims against Naftogaz are running into 80bn dollars, of which about 50bn dollars are the demands based on "take or pay" clause in gas contracts. Gazprom may win another 30bn if the arbitration confirms the validity of the current edition of the gas contract between the two companies.

According to Vitrenko, the decision on the gas contract is expected to be issued in April, and on transit in June.