In the lawsuit filed against the Cabinet of Ministers of Ukraine (the case of natural gas contracts), the court will consider a petition on the prohibition of the government to issue state guarantees for debt of NJSC Naftogaz Ukrainy to OJSC Gazprom

On 11 April 2013 a petition was lodged with the District Administrative Court of Ukraine with regard to case 826/2981/13-a, in which the plaintiff asks the court to:

Prohibit NJSC Naftogaz Ukrainy to pay the penalties claimed by OJSC Gazprom and resulting from performance or non-performance of contracts for gas supply between OJSC Gazprom and of NJSC Naftogaz Ukrainy dated 19 January 2009 No. KP and on the volumes and terms of transit of natural gas through Ukraine during 2009- 2019 of 19 January 2009 № TKGU.

Prohibit the Cabinet of Ministers of Ukraine to issue guarantees to third parties on the fulfillment by the economic entity Naftogaz Ukrainy of its obligations under the contracts for gas supply concluded between OJSC Gazprom and Naftogaz Ukrainy dated 19 January 2009 No. CP and on the volumes and terms of transit of natural gas through the territory of Ukraine during 2009- 2019 of 19 January 2009 No. TKGU.

In support of this petition the plaintiff notes, inter alia, that the practice of issuing the Cabinet of Ministers of Ukraine of government guarantees is detected in a recent dispute arbitrated by the Commercial Court of Kyiv filed by the Russian Ministry of Defense regarding the debt of the corporation United Energy Systems of Ukraine (judgment of 19 September 2012), in consideration of which the court ordered the Ukrainian government to pay the plaintiff 3 billion 113 million 53 thousand 506 UAH. Thereby, the obligation to repay debts of a legal entity of private law has been re-laid to the state and citizens.

The above is also confirmed by the findings of Temporary Investigative Commission of the Verkhovna Rada of Ukraine (TIC) on the investigation into the circumstances of signing gas contracts between Naftogaz Ukrainy and OJSC Gazprom on the evidence of treason in the area of economic security of Ukraine, set up by the Verkhovna Rada of 17 March 2011 № 3145-VI pursuant to part four of Article 89 of the Constitution of Ukraine, Article 87 of the Regulations of the Verkhovna Rada. In particular, the TIC’s findings contain evidence of appeal of the Ministry of Defense of the Russian Federation to the Government of Ukraine "to consider the matter of repayment of said debt of companies Y.V. Tymoshenko. That is, the debt of Tymoshenko's private entities is presented for payment to the Ukrainian government", - the conclusion reads.

Moreover, the plaintiff insists that the alleged actions of Naftogaz Ukrainy aimed at paying undue penalties for Gazprom’s claims are unlawful, as the discrepancy in provisions of contracts with international agreements is confirmed by the Cabinet of Ministers of Ukraine and the President of Ukraine.

The petition will be considered on 12 April 2013 at the District Administrative Court of Kyiv (Komandarma Kameneva St., 8, Bldg. 1, courtroom 2).