Key facts
- A Kazakhstan court has overturned a ruling allowing Ukraine's Naftogaz to seize $1.4 billion from Russia's Gazprom.
- The Astana International Financial Center court cited a lack of jurisdiction for the enforcement.
- The dispute stems from Gazprom's refusal to pay Naftogaz for gas transit following Russia's invasion of Ukraine.
- An international arbitration award of over $1.4 billion was previously granted to Naftogaz.
- Ukraine seeks a total of $6.9 billion in arbitration damages from Gazprom.
A Kazakhstan court has blocked Ukraine's state-owned energy company Naftogaz from collecting approximately $1.4 billion from Russia's Gazprom. The Court of the Astana International Financial Center (AIFC) ruled on July 7 that the case fell outside its jurisdiction, overturning a previous decision from May 2026 that had recognized and enforced the award.
The dispute between Naftogaz and Gazprom originated in 2022 when Gazprom allegedly refused to fully pay Naftogaz for transiting Russian gas, violating contractual obligations amid logistical challenges caused by Russia's invasion of Ukraine. An international court initially awarded Naftogaz $1.37 billion in debt in June 2025, a decision later upheld by a Swiss ICC in March 2026, which also ordered Gazprom to cover additional costs, bringing the total to over $1.4 billion.
Kazakhstan's AIFC had initially recognized and enforced the ruling on May 15, 2026, providing a legal pathway to recover funds within Kazakh territory. However, days later, Kazakhstan's Justice Ministry indicated it would not enforce the collection. The AIFC has now completely reversed its earlier decision, stating the court lacked the authority to enforce an ICC arbitration award rendered outside Kazakhstan and the AIFC's arbitration system.
This ruling represents another setback in a protracted legal battle involving numerous international arbitration proceedings. Ukraine aims to recover a total of $6.9 billion in arbitration damages from Gazprom, including $5 billion for losses incurred during Russia's 2014 annexation of Crimea. Under international law, arbitration awards can be enforced in various jurisdictions by seeking to seize foreign-held assets if a defendant's state fails to pay voluntarily.