(Reuters) -The export arm of Russia's Gazprom (MCX:GAZP) on Wednesday denied it was in breach of contract regarding gas supplies to Germany's Uniper , after Uniper launched arbitration proceedings in a bid to claim back billions of extra costs over undelivered gas supplies.
Gas has been at the centre of a geopolitical row between Russia and Europe since Moscow invaded Ukraine in February. The West has accused Russia of cutting supplies, trying to freeze Europe and stoke a cost of living crisis in a bid to undermine its support for Ukraine.
Gazprom stopped supplying gas to Germany at the end of August, when it shut down the Nord Stream 1 pipeline that was previously the main gas link between Russia and Germany.
The Germany company, which is in the process of being nationalised in a state bailout to survive the energy crisis triggered by the Ukraine war, puts the cost of replacing Russian gas at around 11.6 billion euros ($12.02 billion) to date.
Gazprom said it intended to defend itself against claims.
"Gazprom Export does not recognise any violation of contract or the legality of Uniper's stated claims for damages," it said in a statement.
"We are studying the statement and will defend our interests within the legal framework," it added.
In the first nine months of 2022, Uniper reported a 40 billion euro ($39.3 billion) net loss, the biggest in German corporate history. Part of that was down to higher costs of replacing lost Russian gas supplies on the more expensive spot market.