Naftogaz continues to sue Russia for lost Crimean assets

Naftogaz of Ukraine continues to sue Russia for lost Crimean assets and will demand $8 billion, including interest, Naftogaz Executive Director Yuriy Vitrenko has said on Facebook.
"This week, we are finalizing preparations for the next submission of documents as part of the arbitration process against the Russian Federation on assets in Crimea. This arbitration process has been going on for several years," Vitrenko wrote.

He noted that the lost assets were estimated to be worth about $8 billion, including interest.

"By the way, Ukraine's prime minister stated in a letter to Naftogaz's supervisory board that agreements with Gazprom were made possible thanks 'to the agreements reached by the political leadership of the state at the interstate level.' If it means believing that such agreements have played a decisive role, it would be good if the country's political leadership has just reached an agreement at the interstate level on Russia paying us compensation for the loss of assets in Crimea (about $8 billion, including interest)," Vitrenko said.

He recalled that the said lawsuit goes beyond the framework of reached agreements on the mutual cancellation of court claims for the purpose of signing a gas transit contract.

"I note that in the arbitration process on assets in Crimea, we are opposed by the state of the Russian Federation, not Gazprom, and therefore this arbitration process is not covered by the settlement agreement with Gazprom, which Naftogaz concluded in December after Gazprom complied with the Stockholm arbitration court's decision to pay us $4.6 billion (plus $400 million as interest on the date of the final settlement) and agreed to extend gas transit," Vitrenko added.

On October 17, 2016, Naftogaz and six of its subsidiaries initiated arbitration proceedings against Russia, demanding compensation for damages.

In August 2017, the Permanent Court of Arbitration in The Hague started considering Naftogaz's arbitration application against Russia regarding compensation for assets lost as a result of the 2014 annexation of the Crimean Peninsula.

Oral hearings on jurisdiction and responsibility took place at the Peace Palace in The Hague in May 2018.

In March 2019, Naftogaz received a positive opinion in a lawsuit against Russia. The Tribunal acknowledged jurisdiction in the case of lost assets.