(Bloomberg) -- Russia may sanction Ukraine’s state-run energy company if it pursues legal claims against the nation and Gazprom PJSC, putting gas shipments to Europe at risk.

NJSC Naftogaz Ukrainy started a dispute last year with the Russian gas giant over Gazprom’s refusal to use services outlined in a transit contract between the two companies. At the end of June, Naftogaz filed a motion to a US court, asking it to confirm an earlier award by a tribunal in the Hague that ordered Russia to pay $5 billion in compensation for the damages and lost property after Moscow annexed Crimea.

“If Naftogaz continues such malevolent actions, it can’t be ruled out that this may lead to the imposition of sanctions by the Russian Federation,” Gazprom Chief Executive Officer Alexei Miller said in televised comments on Thursday. “Then any relations between Russian companies and Naftogaz will simply be impossible.”  

It’s the second warning from Gazprom in almost a year over the possible imposition of sanctions, which could halt the remaining Russian pipeline gas flows to Europe. Gas transiting through Ukraine is one of the last two routes for Gazprom to deliver fuel to what was formerly its biggest market. 

Daily flows via Ukraine have averaged 38.4 million cubic meters so far this year compared with almost 110 million cubic meters envisioned by the transit agreement. 

Miller also questioned the impartiality of European courts in a legal case between Gazprom and Naftogaz, amid Western sanctions over Russia’s invasion of Ukraine.

“In such circumstances, Gazprom believes that the arbitration proceeding is illegitimate and participation in the process is pointless,” the CEO said.

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