Ukrainian Naftogaz signed an agreement with Covington and Burling lawfirm
Ukrainian Naftogaz signed a contract for $6.31 million with Covington & Barling LLP (New York, USA). Covington & Barling LLP will represent the interests of the national oil and gas company (Naftogaz Ukraine) in arbitration against Russia under a claim for the compensation of losses over the annexation of the Crimea by Russia.
As Interfax-Ukraine reported, the agreement was signed on January 11th. According to Naftogaz’s report in the ProZorro e-procurement system, the agreement will expire on December 31st, 2017.
Earlier, the Chief Executive Officer of the Ukrainian state energy company Naftogaz, Andriy Kobolyev, predicted that the hearing of a lawsuit against Russia, in which Naftogaz demands to refund losses totaling approximately to $ 2.6 billion, caused by the illegal seizure of the holding’s assets as a result of the annexation of the Crimea, would last for about two-three years.
Andriy Kobolyev stated on Channel 5 that Naftogaz has high chances of winning this case. As previously reported, the Ukrainian state energy company, Naftogaz, announced its plans to work towards the regaining of control over assets, which were lost due to Russia’s occupation of the Crimea. Also, the plan is to work towards a compensation for all the incurred losses through international judicial institutions.
In February 2016, Naftogaz initiated a negotiating process regarding the loss of its assets in the Crimea by formally notifying Russia of an investment dispute under the bilateral agreement on the mutual protection of investments between the two countries.
The six-month negotiating period ended inconclusively in August 2016. That is why, on October 17th, 2016, Naftogaz and its six subsidiary enterprises (Chornomornaftogaz, Ukrtransgaz, UkrGazVydobuvannya, Ukrtransnafta, Gas of Ukraine and LIKVO) initiated an arbitration proceeding against the Russian Federation.