By the resolution dated 29 October 2019, the chief state executor of the DED of the DSES of the MJU unified enforcement proceedings No. 60258848, No. 60259987, No. 60260134, No. 60258900 into the consolidated enforcement proceeding No. 59036926, which is administered by the DED of the DSES of the MJU.

Oschadbank applied to the Division for the Enforcement of Decisions of the Department of the State Executive Service of the Ministry of Justice of Ukraine (hereinafter referred to as the DED of the DSES of the MJU) with applications to initiate an enforcement proceeding in order to enforce the decision of the Kyiv Court of Appeal.

1. By the resolution dated 09 October 2019, the chief state executor of the DED of the DSES of the MJU initiated the enforcement proceeding (No. 60258848) to recover compensation for damages in the amount of 1,111,300,729 (one billion one hundred eleven million three hundred thousand seven hundred twenty-nine) US dollars from the RF represented by the Ministry of Justice of the Russian Federation.
   • On October 9, 2019, it was decided to collect from the RF, represented by the Ministry of Justice of the Russian Federation, an enforcement fee of 10 percent of the amount to be enforced, returned, or the value of the debtor's property to be transferred under the executive document (111,130,072.90 US dollars).
   • On October 9, 2019, it was also decided to seize all movable and immovable property owned by the RF represented by the Ministry of Justice of the Russian Federation within the amount of the foreclosure, including the enforcement fee, 1,222,430,801.90 US dollars.
2. By the resolution dated 09 October 2019, the chief state executor of the DED of the DSES of the MJU initiated the enforcement proceeding (No. 60259987) to recover from the RF represented by the Ministry of Justice of the Russian Federation the costs for legal representation, remunerations for experts and related costs in the amount of 3,134,907 (three million one hundred thirty-four thousand nine hundred seven) US dollars 34 (thirty-four) cents.
   • On October 9, 2019, it was decided to collect from the RF, represented by the Ministry of Justice of the Russian Federation, an enforcement fee of 10 percent of the amount to be enforced, returned, or the value of the debtor's property to be transferred under the executive document (313,490.73 US dollars).
   • On October 9, 2019, it was also decided to seize all movable and immovable property owned by the RF represented by the Ministry of Justice of the Russian Federation within the amount of the foreclosure, including the enforcement fee, 3,448,398.07 US dollars.
3. By the resolution dated 09 October 2019, the chief state executor of the DED of the DSES of the MJU initiated the enforcement proceeding (No. 60260134) to recover from the RF represented by the Ministry of Justice of the Russian Federation the interest accrued before the delivery of the award on 1,111,300,729 (one billion one hundred eleven million three hundred thousand seven hundred twenty-nine) US dollars from 31 March 2014 to the date of the award – 26 November 2018, at the average (calculated for the period between the valuation date, 31 March 2014, and the date of this award) semi-annual LIBOR rate in US dollars plus 2%, given an annual capitalization.
   • On October 9, 2019, it was decided to collect from the RF, represented by the Ministry of Justice of the Russian Federation, an enforcement fee of 10 percent of the amount to be enforced, returned, or the value of the debtor's property to be transferred under the executive document (17,874,102.74 US dollars).
   • On October 9, 2019, it was also decided to seize all movable and immovable property owned by the RF represented by the Ministry of Justice of the Russian Federation within the amount of the foreclosure, including the enforcement fee, 196,615,130.10 US dollars.
4. By the resolution dated 10 October 2019, the chief state executor of the DED of the DSES of the MJU initiated the enforcement proceeding (No. 60258900) to recover from the RF represented by the Ministry of Justice of the Russian Federation interest accrued after the delivery of the award on the amounts specified in paragraphs (3), (4) and (5) of the award, in total amounting to 1,115,167,036 (one billion one hundred fifteen million one hundred sixty-seven thousand thirty-six) US dollars 34 (thirty-four) cents from the date of the award (26 November 2018) until payment in full, at the average (calculated for the period between the valuation date, 31 March 2014, and the date of the award) semi-annual LIBOR rate in US dollars plus 2%, given an annual capitalization and annual accrual of compound interest. As of 10 October 2019, such debt amounted to 33,520,501.13 US dollars.
   • On October 10, 2019, it was also decided to collect from the RF, represented by the Ministry of Justice of the Russian Federation, an enforcement fee of 10 percent of the amount to be enforced, returned, or the value of the debtor's property to be transferred under the executive document.

The Paris Court of Appeal, having reviewed the appeal of the RF, decided in favor of Oschadbank, thereby rejecting an attempt of the RF to suspend enforcement of international arbitration dated 26 November 2018. The resolution in French is available at link.

Considering the appeal, the Paris Court of Appeal found the arguments presented by the Russian Federation unreasonable and ill-founded. The Court emphasized that the requirements for the suspension of the enforcement of the award should be assessed on the basis of the specific facts of the case. Therefore, the reference to abstract or hypothetical grounds put forward by Russia was inadmissible

The Court of Appeal stated that the risk of harm to the rights of the Russian Federation as a result of an attempt to enforce the award in respect of its assets enjoying immunity from enforcement, as stated by the Russian Federation in its application, was not a sufficient ground for suspending enforcement. The issue of forced execution, including at the expense of assets that could enjoy immunity, is a matter for consideration by local courts in each individual jurisdiction. In addition, the Court noted that the risk of foreclosure on sovereign property could not justify the suspension of the arbitral award. The court noted that the enforcement of the award would not jeopardize the country's financial situation and that Oschadbank, which is a reliable commercial bank, did not pose risk to possible refund in case of cancellation of the award. The Court therefore rejected the Russian Federation's application and ordered it to bear part of the costs for the proceeding.

The Paris Court of Appeal considered the appeal of the RF Government against the decision of the Arbitral Tribunal. For further details see the press release of Oschadbank available at link.

Russia's main argument was that enforcing an arbitration award in countries that are less concerned with protection of the state immunity than France could harm it. Russia may suffer material damage, and its rights may to be violated. In its application, the Russian Federation asked the Paris Court of Appeal to suspend the enforcement of the arbitral award in order to protect itself from any attempts to enforce it abroad. Thus, in fact, Russia had acknowledged that it did not intend to implement that award

Kyiv Court of Appeal satisfied the application of Oschadbank and granted permission for the execution of the Arbitral Tribunal award dated 26 November 2018. The decision is available at link. This decision ruled to:

1. satisfy the application of Oschadbank for recognition and granting permission to execute the decision of the Arbitral Tribunal dated 26 November 2018 in the PCA case No. 2016-14 on the claim of Oschadbank v. the Russian Federation represented by the Ministry of Justice of the Russian Federation regarding compensation for damages;
2. recognize and grant permission to enforce the award of the Arbitral Tribunal dated 26 November 2018 in the PCA case No. 2016-14 on the claim of Oschadbank v. the Russian Federation represented by the Ministry of Justice of the Russian Federation to recover funds as compensation for expropriation of Oschadbank’s investments in the Crimean peninsula;
3. issue a writ of execution to recover from the RF represented by the Ministry of Justice of the Russian Federation in favor of Oschadbank damages in the amount of 1,111,300,729 (one billion one hundred eleven million three hundred thousand seven hundred twenty-nine) US dollars;
4. issue a writ of execution to recover from the RF represented by the Ministry of Justice of the Russian Federation in favor of Oschadbank the costs of arbitration, including administrative costs of the Permanent Chamber of Arbitration as well as remuneration for and costs of members of the Arbitral Tribunal in the amount of 731,400 (seven hundred thirty-one thousand four hundred) US dollars;
5. issue a writ of execution to recover from the RF represented by the Ministry of Justice of the Russian Federation in favor of Oschadbank the amount of legal representation costs, remunerations for experts and related costs in the amount of 3,134,907 (three million one hundred thirty-four thousand nine hundred seven) US dollars 34 (thirty-four) cents;
6. issue a writ of execution to recover from the RF represented by the Ministry of Justice of the Russian Federation in favor of Oschadbank interest accrued before the delivery of the award on 1,111,300,729 (one billion one hundred eleven million three hundred thousand seven hundred twenty-nine) US dollars from 31 March 2014 to the date of the award – 26 November 2018, at the average (calculated for the period between the valuation date, 31 March 2014, and the date of this award) semi-annual LIBOR rate in US dollars plus 2%, given an annual capitalization;
7. issue a writ of execution to recover from the RF represented by the Ministry of Justice of the Russian Federation in favor of Oschadbank interest accrued after the delivery of the award on the amounts specified in paragraphs (3), (4) and (5) of the award, in total amounting to 1,115,167,036 (one billion one hundred fifteen million one hundred sixty-seven thousand thirty-six) US dollars 34 (thirty-four) cents from the date of the award (26 November 2018) until payment in full, at the average (calculated for the period between the valuation date, 31 March 2014, and the date of this award) semi-annual LIBOR rate in US dollars plus 2%, given an annual capitalization and annual accrual of compound interest;
8. collect from the RF represented by the Ministry of Justice of the Russian Federation in favor of Oschadbank court costs, namely court fees for filing an application for recognition and granting permission to execute the decision of the international commercial arbitration in the amount of UAH 960.50.

The Government of the RF filed an appeal against the award of the Arbitral Tribunal with the Paris Court of Appeal.

the tribunal granted its award on Russia's violation of its obligations before Oschadbank under the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on Encouragement and Mutual Protection of Investments and awarded USD 1.3 billion in favor of Oschadbank as compensation for damages caused by RF. In this decision it was announced, awarded and ruled:

1. the Arbitral Tribunal has jurisdiction to rule on the dispute;

2. the RF violated the Agreement dated 27 November 1998 between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on Encouragement and Mutual Protection of Investments, in particular Part 1, Article 5 (expropriation) of the Agreement by illegal expropriation of Oschadbank’s investments in the Crimean peninsula;

3. the RF shall be obliged to promptly pay USD 1,111,300,729 on the following grounds:

• loss of assets in the amount of USD 597,771,793;
• loss of potential profits in the amount of USD 484,616,757; and
• other categories of losses referred to in paragraphs 336 to 341, in the amount of USD 28,912,179, which are lost assets of third parties and lost collateral in transactions with other branches;

4. the RF shall be obliged to promptly pay Oschadbank the amount of USD 731,400.00, which includes the costs of the arbitration proceeding, including administrative expenses of the Permanent Court of Arbitration and the remuneration for and expenses of members of the Arbitral Tribunal;

5. the RF shall be obliged to promptly pay Oschadbank all its costs for legal representation, remuneration for experts and related expenses in a total amount of USD 3,134,907.34;

6. the RF shall be obliged to promptly pay Oschadbank interest accrued before the delivery of the award on the amount referred to in paragraph (3) above, from 31 March 2014 to the date of this award, at the average (calculated for the period between the valuation date, 31 March 2014, and the date of this award) semi-annual LIBOR rate in US dollars plus 2%, given an annual capitalization, and

7. the RF shall be obliged to promptly pay Oschadbank interest accrued after the delivery of the award on the amount referred to in paragraphs (3), (4) and (5) above, from the date of this award until payment in full, at the average (calculated for the period between the valuation date, 31 March 2014, and the date of this award) semi-annual LIBOR rate in US dollars plus 2%, given an annual capitalization and annual accrual of compound interest.

Hearings on the jurisdiction of the tribunal and on the merits took place in Paris from 27 to 29 March 2017 with the participation of Oschadbank representatives. Russia did not send its representatives to the hearing.

Oschadbank filed additional documents with the tribunal.

Oschadbank filed additional documents with the tribunal.

Comments of the Government of Ukraine were added to the case on 22 December 2016 due to the lack of objections of the parties in this regard.

The Government of Ukraine submitted its comments in this case as a third party.

By procedural decision No. 1, the tribunal obliged Oschadbank to submit its application. Oschadbank submitted its application on 26 August 2016. The RF has not commented on any aspect of the case for specified time.

Representatives of the Government of the Russian Federation sent letters to the tribunal refusing to recognize the legality of arbitration in this case.

Representatives of the Government of the Russian Federation sent letters to the tribunal refusing to recognize the legality of arbitration in this case.

The appointed arbitrators elected the presiding arbitrator (Sir David A.R. Williams).

Due to Russia's failure to appoint an arbitrator on its part, the third party appointed an arbitrator from the Russian Federation in accordance with the procedure provided for in the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) (Hugo Perezcano Diaz) on 31 March 2016.

On 20 January 2016, i.e. after the expiration of the six-month period granted for the disputes settlement through negotiations, Oschadbank initiated an arbitration proceeding in accordance with paragraph (c) of Part 2, Article 9 of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on Encouragement and Mutual Protection of Investments and the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) and sent RF a notice thereof dated 18 January 2016. Oschadbank also appointed its arbitrator in this notice (Charles N. Brower).

In a letter dated 24 December 2015, the RF stated that from its standpoint, the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on Encouragement and Mutual Protection of Investments shall not apply to the facts set out in the letter of Oschadbank dated 08 July 2015.

Oschadbank sent a letter to the Russian Federation again.

Public Joint Stock Company “State Savings Bank of Ukraine” (hereinafter referred to as Oschadbank) sent a letter to the Russian Federation (hereinafter referred to as the RF). Pursuant to Part 1 of Article 9 of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on Encouragement and Mutual Protection of Investments, Oschadbank notified the RF of a dispute initiation between the parties.