On April 12, the arbitration tribunal at the Permanent Chamber of the Arbitration Court in The Hague ordered Russia to pay USD 5 billion in compensation for damages and lost property of the Naftogaz of Ukraine national joint-stock company in Crimea.
This is stated in the message of Naftogaz, Ukrainian News Agency reports.
"The Naftogaz team has a victory on the energy front. Despite Russia's efforts to obstruct justice, the Arbitration Tribunal obliged the Russian Federation to compensate Naftogaz for damages in the amount of USD 5 billion. This is about the consequences of Russia's capture of our assets in Crimea in 2014. Now Russia must fulfill this decision in accordance with its obligations under international law," commented Oleksii Chernyshov, head of Naftogaz.
It is noted that arbitral awards can be enforced through an enforcement mechanism.
Thus, in the event of Russia's refusal to voluntarily comply with the court decision, in accordance with the New York Convention of 1958, Naftogaz has the right to start the process of recognition and admission to the enforcement of the decision on the territory of those states where the assets of the Russian Federation are located.
"The court established that the amount of such compensation should be equal to the fair market value of Naftogaz's assets before their expropriation. Despite Russia's insistence that Naftogaz is not entitled to any compensation for the expropriation of its assets, the Arbitration Tribunal disagreed with such a statement. The amount of compensation established by this decision is the largest amount awarded by an international arbitration tribunal as compensation for Russia's expropriation of assets in Crimea," the message reads.
In addition, according to the report, the court ruled that the Russian Federation should compensate Naftogaz for the costs associated with this arbitration proceeding.
As Ukrainian News Agency earlier reported, in February 2022, the Arbitration Tribunal in The Hague began hearings regarding Naftogaz's claim to Russia for compensation of USD 10 billion for lost assets in Crimea.
In late December 2019, the Naftogaz of Ukraine national joint-stock company received USD 2.918 billion from the Russian gas monopolist company Gazprom to fulfill the decision of the Stockholm Arbitration.
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