Mr Justice Field:

1. There is before the court an application for an order that Gater Assets Limited (“Gater”) provide security for costs in respect of an application by Nak Naftogaz Ukrainiy (“Naftogaz”), a Ukrainian Corporation, to set aside an order made by Coleman J pursuant to s.101 (2) of the Arbitration Act (“the Act”) permitting Gater to enforce an award dated the 31st May 2000 made at the International Commercial Arbitration Court in Moscow.

2. The agreement to arbitrate is contained in a transit agreement made between Gazprom, the Russian gas producer, and Naftogaz’s legal predecessor. Under this agreement Gazprom had the right to send gas through the Brotherhood pipeline in the Ukraine in exchange for allowing Naftogaz’s legal predecessor to take a specified quantity of the transiting gas.

3. It was alleged in the arbitration that: (1) Gazprom insured against gas being misappropriated as it passed through the Brotherhood pipeline in the Ukraine with its captive insurer, Sogaz; (2) between the 1st November 1998 and the 21st December 1999 Sogaz reinsured the risk with Monde Re, a company incorporated in Monaco; (3) in December 1998 the legal predecessor of Naftogaz took more gas than it was entitled to under the terms of the transit agreement with Gazprom and Sogaz paid US$88,256,704.49 under the original insurance to Gazprom and Monde Re in turn paid Sogaz the like sum under the terms of the reinsurance; (4) in these circumstances under Russian law the rights of Gazprom in respect of the misappropriated gas passed to Monde Re by way of subrogation; and (5) accordingly Naftogaz owed Monde Re US$88,256,704.49.