Israeli Arbitrator ‘Finishes Off’ Russian Gazprom: Ukraine to Collect $1.3 Billion — and Israel May Seize Gazprom Assets Under New York Convention

Thanks to the New York Convention, assets of the Russian corporation may be seized even in Israel.

On June 20, 2025, Ukraine won a historic victory in international arbitration: the Stockholm tribunal ordered Russia’s Gazprom to pay $1.37 billion to Ukraine’s Naftogaz. A key factor was the participation of an Israeli arbitrator in the final tribunal alongside representatives from Sweden and Switzerland.

The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) included three independent experts: Sweden, Switzerland, and Israel. The Israeli judge’s identity remains confidential according to SCC rules, but his participation is confirmed by legal sources such as Global Arbitration Review.

Naftogaz CEO Serhiy Koretskyi emphasized that the tribunal fully upheld Ukraine’s claims, despite Gazprom’s efforts to dispute the case through Russian courts.

“Now we have a final decision. The next step is enforcement. We will work on that — step by step,” Koretskyi stated.

How Ukraine reached this outcome

The dispute stems from the 2019 contract between Gazprom and Naftogaz for transit of at least 65 bcm of gas in 2020 and 40 bcm annually from 2021–2024. The contract followed a take-or-pay structure: Gazprom had to pay for reserved capacity whether it was used or not.

Gazprom breached the agreement, prompting Naftogaz to initiate arbitration. After nearly three years, a final verdict: Russia must pay $1.37 billion, including debt, penalties, and legal fees.

In May 2022, Ukraine halted gas transit through the Sokhranivka station due to occupation. Transit was redirected to the Sudzha station, significantly reducing volume. In September 2022, Naftogaz filed the arbitration, citing a violation of the take-or-pay clause.

How the debt accrued

1. May 2022: Ukraine halts Sokhranivka due to occupation, offers to reroute through Sudzha.
2. Gazprom refuses and stops paying for “unused” capacity, accumulating a $1.14 billion debt.
3. Penalties, interest, and $90 million in legal costs increase the total to $1.37 billion.

What the tribunal decided

Total of $1.37 billion includes:

• Principal debt under the 2019 gas contract
• Penalty charges
• Full reimbursement of Ukraine’s legal costs

How Ukraine will recover the $1.3 billion

1. 1958 New York Convention: SCC rulings enforceable in 172 countries.
2. Freeze & Seize: Freezing Gazprom’s dividends in LNG and EU subsidiaries.
3. Courts in The Hague and UK High Court: ex parte process allows action without debtor.
4. Transit fees: GASCADE (Germany) and Snam (Italy) may pay Naftogaz directly.
5. Securities: Gazprom shares and bonds in Euroclear/LCH subject to seizure.

Israel and the New York Convention

The 1958 New York Convention ensures enforcement of foreign arbitration rulings. Israel joined on January 5, 1959, and must honor valid international decisions.

If Gazprom or affiliates hold assets in Israel — accounts, contracts, or company shares — Ukraine may seek enforcement through Israeli courts.

That could result in:

• Seizure of Gazprom’s assets in Israel
• Ban on operations violating obligations
• Legal precedent increasing Russia’s international isolation

Israel’s stance

Although Israel hasn’t joined all Western sanctions, it strictly observes international legal obligations, including the New York Convention. This makes Israel a potentially key location for enforcing rulings against Russian companies.

Russia’s reaction

Predictably, Moscow rejected the ruling and claimed the tribunal was biased. Propaganda outlets declared that “Gazprom won’t pay and Zelensky’s regime will get nothing.”

However, SCC decisions are widely enforced internationally. Ukraine has already warned that failure to comply will lead to global asset seizures — including in Israel.

Why didn’t Ukraine stop gas transit during the war?

• The contract was valid through 2024 — Ukraine honors agreements.
• EU partner reliability is more important than emotion.
• Gazprom payments are enforceable obligations, not cooperation.

Parallel case: $5 billion for Crimea

Alongside the Gazprom case, Ukraine is enforcing a $5 billion arbitration award against Russia over Crimea. Assets have already been seized in France and Finland, with proceedings ongoing in eight other countries.

Key Naftogaz cases

What’s next?

• The $1.37 billion demand has been sent to Gazprom.
• Each day of delay adds $200,000 in interest.
• If unpaid, global seizures of Gazprom assets — including in Israel — will begin.

Conclusion

This legal victory shows: even energy giants are not immune when international law is enforced. For Israelis of Ukrainian origin, the case proves again that Israel and Ukraine stand united in defending truth and justice.

NAnews – Israel News will continue following the developments and Ukraine’s legal campaign against the aggressor’s economy.