Bulgarian Overgas files lawsuit against Gazprom over failure to deliver product - report
MOSCOW, April 14 (RAPSI) – A lawsuit has been filed by Bulgarian gas distributor, Overgas, against Russian leading gas corporation Gazprom after the halt in gas supplies between two companies, Platts news agency has reported.
According to Platts, the lawsuit in question was filed with the International Court of Arbitration in Paris.
The dispute between companies was started after Gazprom Export, a subsidiary of Gazprom, stopped supplying Overgas with gas on December 31, 2015. The reason behind this halt was cited as “trade issues” between the companies. As a result Overgas had to make a deal with another gas corporation – Bulgarian state-controlled Bulgargaz, Platts has reported.
Tension between Russia and Bulgaria over energy supplies was on the rise in recent years. Bulgaria was to become a landing point for Gazprom’s “South Stream” pipeline, but the project was abandoned in December 2014 after EU opposed the deal, Platts has reported.
Another troubling circumstance in this case is that Gazprom and Gazprom Export own 50% of stakes in Overgas while other 50% belong to Bulgarian businessman Sasho Dontchev who told the European Commission in late 2015 about the Gazprom’s alleged unreliability and that the gas corporation was abusing its dominance on the market by halting supplies of gas to Overgas. According to Platts, Gazprom and Gazprom Export are looking to sell their stakes in Overgas by mid-2016.