Russian Court Blocked NET4GAS Arbitration Against Gazprom
A Russian appeals court upheld an injunction barring the Czech firm from pursuing legal claims against the gas giant.
Updated on Sept. 30, 2026 in Oil and Gas
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A Russian court dismissed an appeal from the Czech firm NET4GAS, officially upholding an injunction that stops the company from continuing arbitration proceedings against Gazprom and Gazprom Export. The court ruling prevents NET4GAS from seeking claims for unused capacity.
Why it matters
The decision underscores the legal complexity created by international sanctions, as the court ruled that restrictions on legal services create unequal conditions for Russian companies. It highlights how Russian courts use domestic procedural codes to shield state-linked entities from foreign legal actions.
NET4GAS faces a potential court-ordered penalty equal to €118.7 million if it persists with the arbitration. The case, identified as A56-49741/2026, involves claims for payment regarding unused capacity.
The players
NET4GAS
This is a Czech gas transmission system operator that manages infrastructure for transporting natural gas.
Gazprom
This is a Russian state-owned multinational energy corporation that is one of the largest natural gas producers in the world.
Gazprom Export
This is 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, the court applied a presumption that sanctions and the refusal of European law firms to represent Russian clients effectively block access to justice. While Czech law permits the Bar Association to appoint counsel for parties, the Russian court maintained its injunction against the proceedings.
Timeline
NET4GAS began its arbitration against Gazprom entities in 2025.
A Russian appeal court dismissed the appeal filed by NET4GAS on September 30, 2026.
Market Landscape
This ruling represents a significant shift in the international arbitration landscape, as Russian courts increasingly utilize Article 248.2 of the Russian Arbitrazh Procedure Code to invalidate foreign legal challenges. This defensive posture effectively insulates Russian state entities from the global legal system amid ongoing international sanctions.
The legal impasse creates uncertainty for international partners currently engaged in contracts with Russian energy entities. Customers and stakeholders should be aware that such judicial interventions can effectively freeze ongoing arbitration, limiting the ability to recover funds or resolve contractual disputes.
The takeaway
The case highlights the growing difficulty of enforcing contractual rights in foreign tribunals when parties are based in heavily sanctioned jurisdictions. Companies operating internationally must increasingly account for the possibility that domestic courts may intervene to halt arbitration efforts.
Further reading
For more background on international energy disputes, visit our Oil and Gas section.
Source note: This article includes information reported by Global Sanctions.
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