Slovakia Shields Gas Provider from Legal Risks of Russia Supply

Slovakia has moved to protect its main gas provider from legal claims on concerns that payments from European buyers of Russian gas could get seized after a court awarded damages to German utility Uniper SE for undelivered Gazprom supplies.

“According to the approved regulation, it will not be possible to seize the gas in the transition or distribution network, nor the claims of a third party from a particularly significant contract for the supply of natural gas,” state-run company SPP said in a statement on Wednesday.

The move — lawmakers approved the amendment earlier this month — could open the door to other countries making similar changes to protect their gas supplies. Hungary had made a similar provision preemptively.

Earlier in June, a Stockholm-based tribunal awarded Uniper more than €13 billion ($13.9 billion) in damages for losses incurred when Gazprom PJSC stopped deliveries following Russia’s invasion of Ukraine. With the Russian gas giant unlikely to pay, there is uncertainty whether payments from its European importers, such as SPP, could be seized as part of the compensation. 

The new Slovak law protects the gas in pipelines and also safeguards SPP payments from third-party claims, a company spokesperson confirmed over email.

The safety net significantly increases the security of gas supplies for the country’s gas customers. While the Slovak utility has diversified its energy sources away from Russia in the last two years, Gazprom remains a significant supplier.