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Naftogaz updated its “Crimean” lawsuits against Russia

Naftogaz updated its “Crimean” lawsuits against Russia 

Naftogaz Ukrainy will file updated Crimean lawsuits against the Russian Federation at the International Tribunal at the Permanent Court of Arbitration in The Hague. This was stated in an interview with by the company’s executive director Yuri Vitrenko.

“We are now filing updated lawsuits against Russia for the loss of the ability to use our property in Crimea. And there is a large amount of claims – $ 5 billion excluding interest. But with interest, this is already more than $ 7 billion, ”said a top manager . According to Vitrenko, the tribunal’s decision is expected “at the end of 2020 or 2021.”

Recall that in September 2017, Naftogaz filed a lawsuit against the Russian Federation at the International Tribunal demanding compensation for losses in connection with the loss of assets in Crimea. The list of valued property includes production assets of the Chernomorneftegaz subsidiary, gas in an underground storage facility in the Crimea, as well as assets of other Naftogaz subsidiaries.

Will Naftogaz receive anything from Russia

Nevertheless, Naftogaz has very little chance of getting a penny from Russia. This is evidenced by the experience of the previous trial which was initiated by the Ukrnafta company.

Recall, on April 12, the International Arbitration at the Permanent Court of Arbitration in The Hague awarded Ukrnaft $ 44.4 million. This is compensation for the loss of company property in Crimea after its reunification with the Russian Federation. Additionally, the court demanded that Moscow compensate for interest (more than $ 5.5 million), penalty and arbitration costs (more than $ 3.5 million).

The Ukrainian company in its lawsuit stated that the Russian Federation allegedly violated its obligations arising from the Russian -Ukrainian agreement, by taking measures from the beginning of April 2014 that impeded their investment in gas stations located in the Crimea, and ultimately led to the expropriation of these investments.

The press service of the Ministry of Justice of the Russian Federation explained that the Russian party did not participate in p considering the lawsuit and “plans to challenge this decision and use all available legal protection mechanisms provided for by international law and Swiss law.”

Representatives of the Russian Federation stated in the comments to the court that a bilateral agreement on the protection of investments between Ukraine and the Russian Federation could not serve the basis for the settlement of claims of the plaintiffs by the arbitral tribunal. In addition, the Russian side stated that it did not recognize the jurisdiction of the Hague arbitration in this proceeding.

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