Italy's Eni opens Gazprom arbitration proceedings after gas supply cuts

Eni SpA started arbitration proceedings after Gazprom PJSC cut gas supplies to Italy following its invasion of Ukraine.

“The reductions applied by Gazprom export are subject to confidential arbitration proceedings,” the Italian energy giant said in reply to a question from shareholder in a document prepared for its annual general meeting on May 10, according to Bloomberg. “The contracts with Gazprom export are still in force.”

Flows of Russian gas to Italy have dropped to almost at zero, Eni Chief Executive Officer Claudio Descalzi said in an interview with La Stampa on 29 April. Eni, which has been a Gazprom client for more than a decade, said the Russian company started cutting deliveries last June.

Eni declined to comment further.

The Italian company aims to fully replace Russian gas volumes by 2025, leveraging relationships with producing nations such as Algeria, Egypt, Mozambique, Congo and Qatar. Italy imported about 40% of its gas from Russia before the invasion of Ukraine.