Naftogaz and its six subsidiaries (Chornomornaftogaz, Ukrtransgaz, Likvo, Ukrgazvydobuvannya, Ukrtransnafta and Gaz of Ukraine) have submitted their statement of claim regarding the compensation for damage caused by the unlawful seizure of the group’s assets in Crimea by the Russian Federation to the Tribunal formed with the Permanent Court of Arbitration in the Hague.
The Naftogaz group’s damage as a result of the occupation of Crimea is now estimated at approximately USD 5 billion. The Tribunal’s award is expected by the end of 2018. In October 2016, Naftogaz and its subsidiaries initiated the arbitration proceedings under the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on mutual promotion and protection of investments commonly known as Ukraine-Russia BIT.
To protect the group’s rights and interests in this case, Naftogaz engaged Covington&Burling LLP, an international law company, which had successfully represented its client’s interests in proceedings against the Russian Federation and Russian state-owned companies.
Background information: A number of Ukrainian companies have filed seven lawsuits against the Russian Federation regarding the protection of investments in occupied Crimea, including Ukrnafta, Oschadbank, Igor Kolomoiskyi and Belbek Airport, Privatbank, Lugzor, Stabil and Everest.
NJSC Naftogaz of Ukraine