Russia will pay. Ukraine’s national energy company, Naftogaz, has announced it has received official approval from the Vienna District Court to initiate forced enforcement of the largest arbitration award against Russia, worth over $5 billion.

Due to the Kremlin’s refusal to pay voluntarily, Naftogaz has launched procedures to seize Russian assets worldwide.

A blow to Russia in the heart of Europe

Based on the Austrian court decision, more than 20 pieces of Russian state-owned real estate in Vienna have been seized, with a total value exceeding €120 million.

These assets will be sold, and the proceeds transferred to Ukraine as part of the compensation awarded in The Hague.

“This is another practical step towards collecting over $5 billion from Russia for the illegal seizure of Naftogaz Group’s assets in Crimea. Russia will pay for everything,” says Naftogaz CEO Serhii Koretskyi.

Arbitration in action

Naftogaz is represented in Austria by the DORDA law firm. The team includes partner Alexander Karl, lead counsel Robert Keimmelmayr, and Therese Stingl.

The seized property includes shares in gas pipelines, equipment, licenses for subsoil use, and over 675 million cubic meters of gas in underground storage, all of which Russia seized during the occupation of Crimea.

Naftogaz was a key player in Crimea’s gas market, responsible for exploration, production, transportation, processing, and distribution of gas.

Amid Russian missile strikes and a gas war, Ukraine has taken its first step toward strategic energy retaliation. Ukraine’s national energy company Naftogaz has announced it has signed its first agreement for the supply of Azerbaijani gas with the state-owned company SOCAR.

Transit via the Balkans

The first gas test delivery was carried out through the Trans-Balkan corridor, which runs from the Bulgarian—Romanian—Ukrainian border.

“This is a small-volume but strategically important step that paves the way for long-term cooperation. It’s also another example of diversifying supply sources and strengthening Ukraine’s energy security,” says Serhiy Koretskyi, CEO of Naftogaz.

Imports to replace war-damaged supplies

Due to Russian strikes on gas infrastructure, Ukraine is forced this year to import a significant volume of gas from Europe. According to former Energy Minister Herman Halushchenko, at least 4.6 billion cubic meters of imported gas must be injected into underground storage facilities. As of June, 2.9 billion cubic meters had already been contracted.

A new route through Greece, Bulgaria, Romania, and Moldova was launched in May, opening another window of opportunity for Ukraine.

A regional energy heavyweight

SOCAR operates actively in Türkiye, Romania, Georgia, Switzerland, and Ukraine, where its subsidiary SOCAR Energy Ukraine runs one of the country’s largest premium gas station networks.

The company is involved in strategic projects supplying Caspian gas to Europe, particularly via the TANAP and TAP pipelines.

Ukraine's state energy giant Naftogaz has commissioned a new exploration well producing 383,000 cubic meters of natural gas per day through its subsidiary Ukrgazvydobuvannya, CEO Sergii Koretskyi announced on July 8.

The 5.7-kilometer deviated well was drilled and commissioned six weeks ahead of schedule as Ukraine works to boost domestic production amid Russian attacks on its energy infrastructure, including gas storage facilities in western Ukraine.

"This is a significant achievement, given the country's need for gas," Koretskyi said.

Naftogaz produces the lion's share of Ukrainian gas, but its production facilities were severely damaged in a series of Russian missile strikes earlier this year, reducing production by as much as 40%.

According to data from Naftogaz, Ukrgazvydobuvannya lost about 50% of its production due to shelling.

Ukrgazvydobuvannya managed to increase commercial gas production to 13.9 billion cubic meters (bcm) in 2024 compared to 13.2 bcm in 2023, commissioning 83 new wells despite wartime conditions.

Ukraine previously produced 52 million cubic meters daily before Russia's full-scale invasion, but required 110-140 million cubic meters during winter months, covering the shortfall from underground storage.

Russian strikes have repeatedly targeted Ukraine's gas infrastructure, including a February 11 combined missile and drone attack that damaged Naftogaz production facilities in Poltava Oblast.

To secure winter supplies, Naftogaz has signed four contracts with Poland's Orlen for delivery of 440 million cubic meters of U.S. liquefied natural gas. The latest agreement, announced July 2, covers an additional 140 million cubic meters.

According to Bloomberg estimates, in 2025 Ukraine may import a record 5 billion cubic meters of gas from Europe.

Ukraine's gas storage situation has also deteriorated significantly, with underground reserves falling to 6.02 bcm as of May 11 — the lowest level in at least 11 years.

The facilities are operating at just 19.4% capacity, with 2.79 billion cubic meters less gas available than the previous year.

Ukraine’s minerals fund focus of private investment ahead of major recovery conference

This week, thousands of companies, business heads, and global leaders are headed to Rome for the fourth Ukraine Recovery Conference on July 10, with many companies hoping for more clarity around the future of a U.S.-Ukraine minerals deal. It’s been over two months since President Volodymyr Zelensky signed Washington’s so-called “minerals deal” — which, in reality, covers all Ukraine’s natural resources, including oil and gas, related infrastructure, and now, defense projects. While the Economy

The Kyiv IndependentDominic Culverwell