Naftogaz: court in The Hague ordered Russia to pay Ukraine $5 billion for assets in Crimea

The Arbitration Tribunal at the Permanent Court of Arbitration in The Hague demanded that Russia pay Naftogaz compensation in the amount of $5 billion due to the loss of assets in Crimea, the Ukrainian side said. It is alleged that Moscow should also compensate for the costs of arbitration proceedings. Russia has not yet commented on the information.

Arbitral awards can be enforced – Naftogaz has the right “to start the process of recognition and admission to enforcement of the decision on the territory of those states where the assets of the Russian Federation are located,” the Ukrainian company said in a statement on its website.

Naftogaz initiated proceedings in the autumn of 2016. According to the Ukrainian side, the Russian Federation must pay compensation for violation of the investment protection agreement, including “expropriation of strategically important energy investments.” The decision in favor of Kyiv was made back in 2019, the second stage of arbitration proceedings concerned the amount of compensation. The Ministry of Justice of the Russian Federation previously stated that Moscow does not recognize the decision of the Hague court.

Read more about the claims of Ukraine – in the material “Kommersant” 2019 Naftogaz demands $5.2 billion from Russia.

Leonid Uvarchev