(Bloomberg) -- European natural gas settled at the highest in more than a week following an international arbitration ruling that adds uncertainty over remaining fuel flows from Russia.

German’s Uniper SE was awarded more than €13 billion ($14 billion) in damages for gas volumes not supplied by Russia’s Gazprom PJSC. While Uniper hasn’t received gas from Russia since 2022, other states in Europe continue to rely on deliveries from the country. Austria’s OMV AG warned recently that court rulings risk disrupting supplies.

Benchmark futures closed 2.9% higher at €35.29 a megawatt-hour, the highest since June 3. 

While Europe has branched out its network of suppliers since the energy crisis battered its economy two years ago, the market remains vulnerable to unexpected disruptions.

Austria still imports about 80% of its gas from Gazprom. In a worst-case scenario, if Gazprom doesn’t pay the damages and the ruling by the Stockholm-based tribunal is strictly enforced, OMV may be forced to redirect payments to Uniper. That would put OMV’s payments to Gazprom at risk, potentially disrupting remaining supplies. 

The decision may also prompt other rulings across the continent, with Italy’s Eni SpA engaged in similar arbitration proceedings. It’s unclear, however, whether Gazprom will pay the damages.

Gazprom declined to comment on the decision. A Uniper spokesperson said the German firm will review its options. OMV declined to comment, while Eni officials weren’t available. 

Other Risks

A host of factors has sparked volatility in gas prices recently, even with the region’s fuel inventories well above usual levels for the time of year and temperatures set to stay mild across most of northwest Europe.

Most recently, Libyan gas supplies to Italy may fall due to a “minor defect” in a heat exchanger at the Mellitah Complex. The unplanned outage will occur June 13-June 19, Eni said in a remit notice.

Flows from Libya to the Gela point in Sicily already declined Wednesday, grid data show. They also were reduced in late May by planned maintenance.

Outages from Norway to Australia have put traders on alert, as has the hot weather in Egypt and parts of Asia, which could ramp up competition for liquefied natural gas cargoes.

--With assistance from John Deane.

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