Naftogaz of Ukraine v. Gazprom

The Astana International Financial Centre (AIFC) Court initially recognized a Swiss ICC award ordering Gazprom PJSC to pay $1.37B to Naftogaz of Ukraine (the 2019 transit contract) and allowed its enforcement in Kazakhstan, which Naftogaz described as the first public decision of a foreign court recognizing that award. The Minister of Justice of Kazakhstan, however, stated that the country would not enforce the AIFC Court’s ruling. On July 7, 2026, Lord Faulks KC, a judge of the AIFC Court, set aside the recognition and enforcement order, finding that the AIFC Court lacks jurisdiction to recognize and enforce foreign arbitral awards. Citing the earlier POSCO case, the court held that the circumstances required to establish jurisdiction under Article 13 of the AIFC Constitutional Statute were absent in this case. The court rejected Naftogaz’s argument that limiting its jurisdiction was contrary to the Constitution of Kazakhstan.

An attempt to enforce an arbitral award against a Russian state-owned company in a “neutral” CIS jurisdiction failed. The AIFC Court found that it lacks jurisdiction to recognize foreign arbitral awards and set aside the enforcement order it had issued earlier.