MOSCOW/VIENNA, May 22 (Reuters) - A Russian court ruling on Wednesday banned Austrian energy company OMV Gas Marketing and Trading GmbH (OMVV.VI) New Tab, opens new tab from pursuing arbitration proceedings in Stockholm against the exporting arm of Kremlin-controlled Gazprom (GAZP.MM) New Tab, opens new tab.

The TASS news agency also said that the Court of Arbitration of St Petersburg and the Leningrad Region threatened to fine OMV 575.2 million euros ($624.26 million) if the Austrian company went ahead with the arbitration in courts outside Russia.

Gazprom and some other Russian companies are trying to move court cases to Russia from international arbitration. Many of the disputes stem from the breakdown of business relations between Russia and the West over the conflict in Ukraine.

"This case is another example of the increasingly widespread and illegitimate practice of certain Russian companies to circumvent validly agreed international arbitration proceedings with the assistance of Russian courts contrary to their contractual obligations," OMV said in a statement.

It said that OMV considered the Russian legal proceedings to be illegitimate and in breach of the principles of a fair trial and applicable laws. OMV is preparing an appeal.

"OMV strongly believes that the decision of the Russian court should not be recognised, upheld or enforced in any jurisdiction, including Russia," it said.

The court also issued the same ruling in April against OMV Exploration and Production GmbH, prohibiting it from seeking international arbitration.

OMV's Chief Executive Officer Alfred Stern said last month that OMV had initiated arbitration proceedings against Gazprom, concerning among other matters its stake in a Russian gas field.

Separately, OMV said on Wednesday that gas supplies from Gazprom may be suspended in connection with a foreign court ruling, without identifying the case. OMV assured the market it would have replacement cover.

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https://www.reuters.com/business/energy/russian-court-bans-austrias-omv-non-russia-arbitration-against-gazprom-tass-2024-05-22/