In late June, NJSC Naftogaz of Ukraine and other enterprises of the group submitted their memorial on quantum in the PCA case against the Russian Federation. Naftogaz group asks the Tribunal to order the Russian Federation to pay the claimants USD 5.2 billion. The Tribunal is expected to decide on the quantum not earlier than the end of 2020.
Earlier this year, the Tribunal found that the Russian Federation had violated a number of BIT clauses, having expropriated Naftogaz group’s assets in Crimea.
As arbitration was bifurcated, the quantum will be determined at the second stage.
Naftogaz owned the most valuable energy assets in Crimea and was one of Russia’s main targets when it confiscated Ukrainian assets after the unlawful invasion and occupation of the peninsula in 2014.
Background information: Naftogaz commenced the arbitration against the Russian Federation in October 2016 according to the Treaty on the Encouragement and Mutual Protection of Investments signed by the Cabinet of Ministers of Ukraine and the Government of the Russian Federation commonly known as Russia-Ukraine BIT. Oral hearings regarding jurisdiction and liability took place in the Peace Palace, The Hague, in May 2018.
The arbitration against the Russian Federation was launched upon the joint notice of NJSC Naftogaz of Ukraine and its six subsidiaries (National Joint Stock Company “Chornomornaftogaz,” JSC Ukrtransgaz, Likvo LLC, JSC Ukrgasvydobuvannya, JSC Ukrtransnafta, and Subsidiary Company Gaz Ukraiiny). The Permanent Court of Arbitration serves as an administrating authority in this arbitration. More information about the case can be found on the website of the Permanent Court of Arbitration: https://pca-cpa.org/en/cases/151/.
Naftogaz of Ukraine