EU court steps back in PPD–Gazprom case, sending dispute to Croatia

A long-running legal dispute between Croatian gas supplier Prvo Plinarsko Društvo (PPD) and Gazprom Export has moved into a new phase after the Court of Justice of the European Union declined jurisdiction. The decision shifts the fight to national proceedings in Croatia, where parties are expected to continue pressing their claims.

The dispute is valued at around €35 million. With the EU court stepping aside, all parties involved—including Privredna Banka Zagreb (PBZ)—are expected to carry the case forward through the Croatian judicial system. While the ruling determines where the litigation should be heard, it does not settle the underlying disagreement.

From a 2017 supply deal to a payment-terms rupture

The conflict traces back to a gas supply agreement signed in 2017. The contract was designed to run for ten years and was later amended multiple times. For several years, however, the relationship deteriorated after changes were introduced in 2022.

In 2022, Gazprom Export altered the payment terms following directives issued by Russian authorities. Under the revised requirement, payments for gas had to be made exclusively in rubles—an approach that diverged from the original contractual terms agreed by both sides.

What happens next under Croatian law

That change in payment conditions is at the center of the dispute and has remained unresolved since it emerged. Although the EU court has now ruled it cannot hear the case, investors and counterparties watching cross-border energy contracting will likely focus on how Croatian courts interpret contractual obligations and amendments tied to payment mechanics.

The final outcome will therefore depend on domestic legal proceedings in Croatia as the litigation continues under national jurisdiction.