CEZ seeks damages from Gazprom for gas undersupply

Credit: REUTERS/DADO RUVIC

Adds no response from Gazprom

PRAGUE, Feb 9 (Reuters) - Czech utility CEZ CEZP.PR said on Thursday it had initiated international arbitration in Geneva against Russian gas company Gazprom GAZP.MM seeking compensation for lower-than-contracted gas delivery last year.

"CEZ seeks to recover damages of approximately 1 billion crowns ($45 million) arising from Gazprom Export LLC's significant underdeliveries of natural gas supplies in 2022," CEZ said in a statement.

CEZ needs gas for some of its electricity production and is a large gas supplier to Czech households.

It had a direct contract with Gazprom for a small part of those volumes until the end of 2022.

The Czech Republic was nearly completely dependent on Russian gas, mostly through the Nord Stream pipeline and Germany, until last year.

Russia halted supply through the Nord Stream 1 pipeline last August as relations with the West deteriorated after Moscow's invasion of Ukraine, which Russia dubs a "special military operation".

The Czech Republic has replaced Russian supply with piped gas and LNG from other sources.

Gazprom did not immediately respond to a request for comment.

($1 = 22.1180 Czech crowns)

(Reporting by Jan Lopatka; editing by Rashmi Aich and Jason Neely)

((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters Messaging: jan.lopatka.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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