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Politics 2019-08-15T04:14:11+03:00
Ukrainian news
International Arbitration Court Orders Russia To Pay Ukrnafta USD 44.5 Million As Compensation For Assets Seiz

International Arbitration Court Orders Russia To Pay Ukrnafta USD 44.5 Million As Compensation For Assets Seized In Crimea

The International Court of Arbitration has ordered Russia to pay the Ukrnafta company, the largest oil producer in Ukraine, USD 44.46 million as compensation for its assets that were seized in Crimea.

The company announced this in a statement, Ukrainian News Agency reports.

According to the statement, Ukrnafta informed Russia about violation of the company’s rights in October 2014 in accordance with the provisions of Section 1 of Article 9 of the agreement between the Cabinet of Ministers of Ukraine and the Russian government on promotion and mutual protection of investments.

Russia ignored this information from Ukrnafta and Ukrnafta referred the dispute to arbitration court on June 3, 2015. The court determined on June 26, 2017, that it had jurisdiction over the dispute under the terms of the agreement between the Cabinet of Ministers of Ukraine and the Russian government on promotion and mutual protection of investments.

Russia appealed against this decision to the Supreme Court of Switzerland, but the Supreme Court of Switzerland rejected Russia’s appeal on October 16, 2018 and upheld the arbitration court’s decision that Ukrnafta was an investor under the agreement between the Cabinet of Ministers of Ukraine and the Russian government on promotion and mutual protection of investments and that Ukrnafta’s assets in Crimea were investments.

"On April 12, 2019, the arbitration court ordered the Russian Federation to pay Ukrnafta USD 44.45 million as compensation for the expropriation of Ukrnafta’s investments in Crimea, as well as more than USD 3.5 million in arbitration costs," the statement said.

As Ukrainian News Agency earlier reported, the Swiss Supreme Court confirmed the validity of Ukrnafta’s appeal to the International Court of Arbitration to protect its assets in the Russian-annexed Crimea in October 2018.

Ukrnafta filed a lawsuit against Russia at the International Arbitration Court in The Hague in January 2016, alleging illegal seizure of its gasoline filling stations in the Russian-annexed Crimea.

The basis for the lawsuit was the bilateral agreement on protection of investments that was signed between Ukraine and Russia in 1998, in which both parties assumed the obligation not to nationalize or expropriate investments made in both countries without timely payment of fair compensation.

Similar cases have been filed against Russia by the companies Novel-Estate, Stabil, Stemv Group, Kirovograd-Neft, Crimea-Petrol, Pirsan, Trade-Trust, Eleftheria, VKF Satek, Rustel, and Rubenor.

Больше новостей о: Crimea Russia court assets Ukrnafta seizure

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