Naftogaz Sues Russia for $5bn over Crimean Assets

Ukrainian state energy company Naftogaz is suing Russia at the Hague Tribunal with a request to oblige the Russian Federation to pay $5.2 billion in compensation for losses inflicted following the seizure of the company’s assets in Crimea, RFE/RL reported. 

“At the end of June, NJSC Naftogaz of Ukraine and the enterprises of the Naftogaz group filed a lawsuit with the Tribunal at the Permanent Court of Arbitration in The Hague on the amount of compensation for losses inflicted following the expropriation of the group’s assets in Crimea. The Naftogaz group asks the Tribunal to oblige the Russian Federation to pay $5.2 billion to the plaintiffs,” the company’ press service said.

The Tribunal is expected to deliver judgment on compensation for damages no earlier than late 2020.

As reported, the Tribunal already recognized that the Russian Federation had violated a number of provisions of the investment protection agreement by expropriating the assets of the Naftogaz group in Crimea.

After Russia took over Ukraine’s Crimean Peninsula, the occupying authorities started nationalizing local industrial assets, including the property of Naftogaz and its subsidiaries. They included pipelines, offshore oil rigs, and other assets.

Oschadbank, Ukraine’s second-biggest state-owned bank by assets, has already been awarded $1.3 billion in lost Crimean assets by the Paris-based International Court of Arbitration. Moscow rejected the ruling.