CEZ Seeking $45 Million in Damages from Gazprom for Gas Undersupply

(Reuters) — Czech utility CEZ said on Thursday it had initiated international arbitration in Geneva against Russian gas company Gazprom seeking compensation for lower-than-contracted gas delivery last year.

"CEZ seeks to recover damages of approximately 1 billion crowns ($45 million) arising from Gazprom Export LLC's significant under deliveries of natural gas supplies in 2022," CEZ said in a statement.

CEZ needs gas for some of its electricity production and is a large gas supplier to Czech households.

It had a direct contract with Gazprom for a small part of those volumes until the end of 2022.

The Czech Republic was nearly completely dependent on Russian gas, mostly through the Nord Stream pipeline and Germany, until last year.

Russia halted supply through the Nord Stream 1 pipeline last August as relations with the West deteriorated after Moscow's invasion of Ukraine, which Russia dubs a "special military operation".

The Czech Republic has replaced Russian supply with piped gas and LNG from other sources.

Gazprom did not immediately respond to a request for comment.

($1 = 22.1180 Czech crowns)

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