KIEV, Feb. 21 - Naftogaz Ukrayiny said Thursday it was recently ordered to pay $12.7 million to the Italian gas trader IUGAS for failing to honor a natural gas supply agreement signed in 2003.

Naftogaz denied a report in Kommersant Ukrayina daily that the court of arbitration in Stockholm had also ruled it must deliver 13.1 billion cubic meters of gas to IUGAS in 2013.

“The decision on recovering 13.1 billion cu m of gas from Naftogaz in favor of the Italian company IUGAS had never been approved,” Naftogaz said in a statement.

Naftogaz partially lost its appeal on December 19, 2012 against the Italian company in Stockholm after losing a ruling on October 19, 2010, Kommersant reported.