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would be inconsistent with Council Regulation No. 44/2001 (“Brussels

I Regulation”).

The Brussels I Regulation sets forth that the Regulation does not

apply to arbitration; however, it does not clarify the scope of this

exception. On the other hand, the Recast Brussels Regulation that

entered into force on January 10

th

, 2015, clarified that proceedings

ancillary to arbitration agreements are not within the scope of the

Brussels I Regulation. The Gazprom decision of the CJEU should be

considered within this framework.

Summary of the Facts

The facts giving rise to the Gazprom decision are related to a dis-

pute between Gazprom and the Ministry of Energy of Lithuania

2

(“Ministry”). The dispute arose out of a shareholders’ agreement

entered into by and between Gazprom and the Ministry. Pursuant to the

arbitration clause in the shareholders’ agreement, any claim, disputes

or contravention with the agreement or its breach, validity, effect, or

termination shall be finally determined through arbitration.

In spite of the arbitration clause in the agreement, the Ministry

filed a lawsuit before the Vilnius Regional Court in Lithuania, seeking

initiation of an investigation in respect of the activities of a legal per-

son. The lawsuit related to some members of the board of directors of

Gazprom. The Ministry also claimed that coercive measures provided

under the Lithuanian Civil Code should be imposed, if the actions of

the company or the board of directors were found to be improper.

In reaction to the lawsuits filed by the Ministry, Gazprom took the

view that the application was in breach of the arbitration clause, and

initiated arbitration proceedings before the Arbitration Institute of the

Stockholm Chamber of Commerce. Gazprom also requested that the

arbitral tribunal should order the ministry to discontinue the proceed-

ings initiated before the Lithuanian courts.

ARBITRATION LAW

217

2

The Judgment of the court may be accessed at the following link:

http://curia.europa.eu/juris/

document/document.jsf?text=&docid=164260&pageIndex=0&doclang=EN&mode=req&dir=

&occ=first&part=1&cid=461949.