USD 5.2 BILLION FOR ASSETS EXPROPRIATED BY RUSSIA IN CRIMEA – NAFTOGAZ GROUP SUBMITTED MEMORIAL ON QUANTUM 31.07.2019
Naftogaz group asks the Tribunal at the Permanent Court of Arbitration to order the Russian Federation to pay the claimants USD 5.2 billion. The Tribunal is expected to decide on the quantum not earlier than the end of 2020.
Earlier, the Tribunal found that the Russian Federation had breached a number provisions of Agreement between the Government of the Russian Federation and the Cabinet of Ministers of Ukraine on the Encouragement and Mutual Protection of Investments (dated 27 November 1998) by the expropriation of Naftogaz group’s assets in Crimea.
As the Tribunal decided to bifurcate the proceeding, the quantum will be determined at the second stage.
Naftogaz owned the most valuable energy assets in Crimea and was one of Russia’s main targets when it confiscated Ukrainian assets after the unlawful invasion and occupation of the peninsula in 2014.
Background information: Naftogaz commenced the arbitration against the Russian Federation in October 2016 under the Agreement on the Encouragement and Mutual Protection of Investments between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation, commonly known as the Russia-Ukraine bilateral investment treaty (BIT). Public hearings regarding jurisdiction and liability took place in the Peace Palace, The Hague, in May 2018.
The arbitration against the Russian Federation was launched upon the joint application of NJSC “Naftogaz of Ukraine” and its six subsidiaries (NJSC “Chornomornaftogaz,” JSC “Ukrtransgaz”, LLC “Likvo”, JSC “Ukrgasvydobuvannya”, JSC “Ukrtransnafta”, and Subsidiary Company “Gaz Ukraiiny”). The Permanent Court of Arbitration serves as an administrating authority in this arbitration.
More detailed information about the case is available on the website of the Permanent Court of Arbitration.
Prepared on the basis of materials of the Communications Department of the NJSC Naftogaz of Ukraine