Lithuania has lost a €1.5 billion (£1.2bn) compensation claim against Russian energy giant Gazprom in a dispute over natural gas prices.

According to Gazprom, the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) “rejected all claims made by Lithuania” with respect to the terms of buying Russian gas.

In 2012, Lithuania said it had overpaid for gas since 2004 when Gazprom bought a majority stake in the Baltic country’s gas importer and changed the way the price of gas was determiend.

Gazprom stated: “In its ruling, the SCC rejected all of Lithuania’s allegations of unfair prices for gas supplied by Gazprom in the period from 2006 through 2015 to Lietuvos Dujos, the Lithuanian-based company that used to have Gazprom and Lithuania as its shareholders.”

The energy giant has divested its stake in Lietuvos Dujos. It added the SCC ruling is final and is not subject to appeal.

Lithuanian Prime Minister Algirdas Butkevicius has been reported as saying he is “disappointed by this ruling” and noted the country has dramatically cut Russian gas imports in recent years.