The tribunal granted its award on Russia's violation of its obligations before Oschadbank

Events

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;
  1. 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;

  2. 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;

  3. 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

  4. 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.

Paris
November, 2018
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