The Permanent Court of Arbitration in The Hague sided with Ukrainian PrivatBank in its dispute with Russia for lost assets in annexed Crimea – the bank’s representatives assert. The financial institution wants to collect more than USD 1 billion from Moscow.

The largest in Ukraine state bank PrivatBank stated that it won the case against Russia regarding lost assets in annexed Crimea. In accordance with the bank’s report made public on Friday, 15 February, Permanent Court of Arbitration in The Hague officially released partial arbitral award, which was adopted on 4 February in favour of the financial institution.

In particular, the Court found that it had jurisdiction over all claims of PrivatBank against the Russian Federation, that the Russian Federation violated its obligations under the bilateral Agreement on Encouragement and Mutual Protection of Investments by illegal expropriation of PrivatBank’s assets in Crimea, and that PrivatBank was entitled to compensation for such expropriation in full.

At the same time, the court left the issue of the amount of compensation for illegal actions of the Russian Federation for the next stage of the arbitration proceeding. In its turn, PrivatBank said that it aimed to receive compensation in the amount exceeding one billion US dollars.

In later published statement, the Court said, that it "unanimous Partial Award addressing the Respondent’s liability in respect of the Claimants’ claims", without specifying the amount of compensation.

Many Ukrainian banks have lost assets and loan portfolios in Crimea due to the annexation of the peninsula. Large state financial institutions have suffered the most. In November last year, the state bank Oschadbank declared victory in an international arbitral tribunal in Paris in the case against Russia. The amount of compensation for the damage caused as a result of the annexation would be USD 1.3 billion dollars. However, the next day Moscow has refused to accept that award alleging that the Сourt did not have jurisdiction for consideration of Oschadbank’s claim.

Simferopol Department of PrivatBank, April 2014. Photo by Getty Imges