Russian Court Blocked NET4GAS Arbitration Against Gazprom
International firms face rising legal risks when pursuing contract claims against Russian state-controlled entities.
Updated on Sept. 30, 2026 in Oil and Gas
Live Poll
Should courts have the power to stop companies from pursuing arbitration in other countries?
A Russian appeals court dismissed an appeal by Czech operator NET4GAS, upholding an injunction that bars the company from continuing international arbitration against Gazprom. The ruling effectively imposes a penalty of the rouble equivalent of €118.7 million if the arbitration continues.
Why it matters
The decision underscores the growing use of Russian legal injunctions to force companies to drop international contract disputes by citing sanctions as a barrier to justice. For operators, this creates significant uncertainty when navigating long-term supply or capacity agreements involving sanctioned entities.
The Russian court ruling in case A56-49741/2026 mandates a penalty of the rouble equivalent of €118.7 million if NET4GAS continues its arbitration against Gazprom entities. This figure represents the total value of the capacity payment claim NET4GAS initiated in 2025.
The players
NET4GAS
A Czech natural gas transmission system operator responsible for the transport of gas through the Czech Republic.
Gazprom
A massive Russian state-owned multinational energy corporation that is the largest supplier of natural gas globally.
Gazprom Export
A subsidiary of Gazprom responsible for the export of natural gas to international markets.
The details
Under Article 248.2 of the Russian Arbitrazh Procedure Code, Russian courts can issue injunctions against foreign legal proceedings if they conclude that sanctions prevent a Russian company from accessing justice. The court applied this code by presuming that EU-wide bans on providing legal services to Russian clients create inherently unequal arbitration conditions. Consequently, NET4GAS is restricted from pursuing its claims for unused capacity, despite the arbitration being centered in the Czech Republic.
Timeline
NET4GAS began arbitration against Gazprom in 2025.
The Russian appeal court dismissed the NET4GAS appeal on September 30, 2026.
Market Landscape
This ruling follows the precedent set by the application of Article 248.2 of the Russian Arbitrazh Procedure Code, which empowers courts to intervene in international legal disputes. It signals a shift where Russian entities are increasingly leveraging domestic judicial tools to counter foreign litigation strategies.
Businesses with contracts involving Russian counterparts should evaluate their existing arbitration clauses for enforceability under current legal conditions. Operators must account for the risk that domestic Russian courts may issue injunctions that impose severe financial penalties on claimants.
The takeaway
The court's reliance on a presumption of unequal access to justice highlights the difficulty of enforcing contract terms against sanctioned entities. Operators should consult with legal counsel to review the jurisdictional protections of their current cross-border commercial agreements.
Further reading
For more on the challenges facing international infrastructure operators, visit Oil and Gas.
Source note: This article includes information reported by Global Sanctions.
Live Poll
Should courts have the power to stop companies from pursuing arbitration in other countries?
