Swiss Court orders Russia to pay Ukrainian companies $80 million for lost Crimean assets
The Swiss Federal court upheld a decision by the Geneva International Court of Arbitration that required Russia to pay more than $80 million to 12 Ukrainian companies as compensation for the damage caused to them as a result of the annexation of Crimea, reports Swiss Info.
Thus, the Swiss Federal Court rejected the appeals of the Russian authorities in connection with the decision taken by the International Court of Arbitration in Geneva last April.
In one of the appeals, the Russian representatives stated that the International Court of Arbitration in Geneva has allegedly no authority to decide in the case.
The Russian side argued that the arguments of Ukrainian companies that the Russian actions fall under the Agreement between the Russian government and the Ukrainian Cabinet of Ministers on mutual protection of investments of 1998, cannot be taken into account.
The agreement between the Russian and Ukrainian Governments stipulates that the countries do not have the right to confiscate assets made by investors of another country without paying fair compensation.
In 2015, 12 Ukrainian companies, including Ukrnafta, filed a lawsuit against Russia in the Permanent Court of Arbitration in The Hague. Some of the companies were affiliated with the group of companies of Ukrainian oligarch Igor Kolomoisky. They demanded that Russia pay compensation for their assets in annexed Crimea in the spring of 2014.
The International Court of Justice in The Hague appointed two arbitrators who elected a Judge from Geneva as head of their panel. Because of that, the case was transferred to Switzerland.
In October 2018, the International Court of Arbitration rejected the arguments of the Russian side and decided in favor of Ukrainian companies.