Dutch court rejects Lukoil claim in sanctions dispute

The District Court of Rotterdam has rejected a claim by Lukoil Netherlands against Swiss energy group Varopreem in a dispute over the supply of renewable fuel certificates, known as HBE, Russian media reported.

The case stems from agreements signed in 2025, under which Lukoil Netherlands was to receive HBE certificates — credits used in the Netherlands to offset carbon emissions.

Varopreem terminated the contracts after the United Kingdom imposed sanctions on Lukoil on October 15, 2025, citing concerns over potential breaches of the sanctions regime. The measures were introduced on the grounds that the company was conducting business in the interests of the Russian authorities.

Lukoil Netherlands argued that the sanctions did not apply to the transactions in question and filed a lawsuit in March 2026 seeking to enforce the agreements.

The Rotterdam court ruled in favour of Varopreem, finding that the company’s British executives had reasonable grounds to fear possible prosecution for sanctions circumvention if the contracts were fulfilled.

The court also said that key aspects of English law could not be adequately examined במסגרת the expedited proceedings initiated by Lukoil Netherlands, adding that the dispute would require a full trial to be properly assessed.

Lukoil holds its Dutch subsidiary through Lukoil International, based in Austria, and Lukoil Belgium.

By Tamilla Hasanova