Copyright © 2024

The work of Euromaidan Press is supported by the International Renaissance Foundation

When referencing our materials, please include an active hyperlink to the Euromaidan Press material and a maximum 500-character extract of the story. To reprint anything longer, written permission must be acquired from [email protected].

Privacy and Cookie Policies.

Hague Court demands Russia pay USD 5B to Naftogaz for seizing Crimea assets, Naftogaz says

Russian paratrooper Ivan Kozlov, 76th Air Assault Division on the seized Chornomornaftogaz drilling rig in December 2014. Chornomornaftogaz is a subsidiary of Naftogaz of Ukraine. Photo: InformNapalm.
Hague Court demands Russia pay USD 5B to Naftogaz for seizing Crimea assets, Naftogaz says

In its April 13 statement, Ukraine’s state-owned energy company Naftogaz said that an arbitration court in The Hague ordered Russia to pay USD 5 billion in compensation for seizing Naftogaz Group’s assets in Ukraine’s region of Crimea that Russia had illegally annexed in 2014.

The Hague’s Arbitration Tribunal at the Permanent Court of Arbitration ruled in the company’s favor in the case on 12 April 2023, according to the statement.

“The Naftogaz team has won a key victory on the energy front. Despite Russia’s attempts to obstruct justice, the Arbitration Tribunal ordered Russia to compensate Naftogaz for losses of USD 5 billion. This relates to the seizure of our assets in Crimea by Russia in 2014. Russia must now comply with this decision in accordance with its obligations under international law,” commented Naftogaz CEO Oleksii Chernyshov.

Naftogaz said that the court had rejected Russia’s claims that Naftogaz is not entitled to any compensation for expropriating its assets, and found that compensation should be equal to the fair market value of the assets before Russia seized them. Also, the court ordered Russia to reimburse Naftogaz for costs associated with the arbitration proceedings.

“Arbitration awards can be executed through an enforcement mechanism. Therefore, if russia refuses to voluntarily execute the decision, pursuant to the 1958 New York Convention, Naftogaz has the right to initiate the process of recognition and admission to enforce the award in the territory of those states where assets of the russian federation are located,” Naftogaz wrote.

Read also:

You could close this page. Or you could join our community and help us produce more materials like this.  We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here

    Will the West continue to support Ukraine?
    • Know what moves the world.
    • Premium journalism from across Europe.
    • Tailored to your needs, translated into English.
    Special discount
    for Euromaidan Press readers
    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!