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Permanent Court of Arbitration: Russia illegally seizes assets of Naftogaz in Crimea

Permanent Court of Arbitration: Russia illegally seizes assets of Naftogaz in Crimea
1 of March 2019 г.
The Permanent Court of Arbitration (PCA) in The Hague ruled that Russia had violated an investment protection agreement by expropriating the assets of NJSC Naftogaz of Ukraine in Crimea.

"The Permanent Court of Arbitration in The Hague acknowledged that Russia violated an investment protection agreement by expropriating the assets of NJSC Naftogaz of Ukraine and its subsidiaries in Crimea," the press service of NJSC Naftogaz of Ukraine reports.

As noted, the PCA ruled that the Russian Federation was responsible for the illegal seizure of the assets of Naftogaz in Crimea in accordance with the bilateral Ukraine-Russia agreement on mutual protection of investments.

"It is a very important victory that will help bring the aggressor to justice over the stolen assets. The cost of seizing Crimea for Russia will grow constantly thanks to the actions of the international community and Ukraine. The PCA’s ruling is an important step in this direction," CEO of Naftogaz Andriy Kobolev said.

According to him, Naftogaz owned the energy assets in Crimea and was one of the main targets of the Russian Federation when it confiscated Ukrainian assets after the illegal invasion and occupation of the peninsula in 2014.

The Permanent Court of Arbitration came to the conclusion that the actions of the Russian Federation in relation to Naftogaz were illegal and violated the bilateral Ukraine-Russia agreement on mutual protection of investments, according to which Russia should respect and protect Ukrainian assets, including those in Crimea.

The court did not determine the amount of damage caused to Naftogaz. It will be defined at the next stage. Naftogaz experts estimate that the value of assets expropriated in Crimea is at least $ 5 billion.



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