The International Court of Arbitration in The Hague (the Permanent Court of Arbitration) began consideration of the lawsuit of Naftogaz of Ukraine against the Russian Federation over compensation for assets lost as a result of the annexation of the Crimea.
Information about the case under consideration was reported on the arbitration website, according to Oil News.
Naftogaz, like other Ukrainian companies, is appealing to the United Nations Commission on International Trade Law (UNCITRAL) and the agreement reached between the governments of Ukraine and Russia on November 27, 1998 on the protection of investments. The arbitration statement was registered by the court on October 17, 2016, and the International Arbitration Court has already formed a panel of arbitrators.
The Russian Federation, in a letter dated January 19, 2017, indicated that it did not recognize the jurisdiction of the International Arbitration for the settlement of Naftogaz claims and did not appoint its own representatives to the arbitration process.
On June 26, the same arbitration court declared its jurisdiction over a similar dispute initiated by the companies Ukrnafta and Stabil and began considering their claims.
On October 17, 2016, Naftogaz of Ukraine and its six subsidiaries initiated arbitration proceedings against the Russian Federation, demanding compensation for damages. According to the state holding, the matter concerns the properties of Chernomornaftogaz, Ukrtransgaz, Ukrgazdobycha, Ukrtransnafta, Gaza Ukraina and Liqvo.
Naftogaz’s preliminary estimate of the group’s damages is $2.6 billion.