Naftogaz begins forced collection of USD 5 billion from RF for loss of property in Crimea

The Naftogaz of Ukraine national joint-stock company and five other companies of the Naftogaz group submitted a petition to the U.S. District Court of Columbia to confirm the decision of the Arbitration Tribunal at the Permanent Court of Arbitration in The Hague, which obliged Russia to pay USD 5 billion (including percentage) compensation for losses and lost property of the company in Crimea.

This follows from a statement by Naftogaz, the Ukrainian News agency reports.

"Such a request became possible thanks to the fact that arbitral awards can be enforced through the enforcement mechanism. Therefore, 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 award on the territory of those states where the assets of the Russian Federation are located," the message reads.

It is noted that under U.S. law, confirmation of an arbitral award is mandatory unless the court finds that there is one of the limited grounds for refusing or delaying recognition or enforcement of the arbitral award set forth in the New York Convention.

At the same time, the interest provided for non-payment of funds in accordance with the arbitration decision continues to be accrued until the full payment of compensation according to the court decision.

"Since Russia has not voluntarily paid Naftogaz the funds provided for in the arbitration decision, we intend to use all available mechanisms to collect these funds. We are currently working on this in the United States and other target jurisdictions," said the head of Naftogaz, Oleksii Chernyshov.

As the Ukrainian News agency earlier reported, on April 12, the Arbitration Tribunal at the Permanent Chamber of the Arbitration Court in The Hague ordered Russia to pay Naftogaz USD 5 billion in compensation for damages and property lost in Crimea.

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