Thus, the Dutch courts have confirmed for the second and final time the legality and validity of the Partial Award issued by the arbitral tribunal at the Permanent Court of Arbitration in The Hague.
“The decision of the Supreme Court strengthens the position of Naftogaz Group in enforcement proceedings to recover the debt owed by Russia for the illegal seizure of assets in Crimea. We are grateful to our legal advisors, Covington & Burling and NautaDutilh, for their outstanding work. Naftogaz is on the path to restoring justice,” said Roman Chumak, Acting Naftogaz Chairman of the Board.
For reference:
By its Partial Award of February 22, 2019, the Tribunal confirmed its jurisdiction over the arbitration proceedings and found that Russia expropriated Naftogaz Group's assets in Crimea in violation of the provisions of the intergovernmental agreement between Ukraine and Russia on the promotion and mutual protection of investments. On July 19, 2022, the Court of Appeal of The Hague rejected Russia's application to set aside the Partial Award. The Supreme Court agreed with the position of the arbitral tribunal and the Court of Appeal of The Hague that the jurisdiction of the arbitral tribunal extends exclusively to investments made after January 1, 1992.
Following the Partial Award of February 22, 2019, the Tribunal proceeded to consider the amount of damages to be compensated to Naftogaz Group. As a result of this consideration, on April 12, 2023, the Final Award granting Naftogaz Group compensation in the amount of approximately USD 5 billion was rendered. Russia continues to appeal this decision, but after the latest ruling by the Supreme Court of the Netherlands, its chances for success are melting further.
As a reminder, at Naftogaz's request, the Helsinki District Court seized certain Russian assets in Finland.
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