CEO: Naftogaz Ukrainy wins suit against Russia over Crimean assets

KIEV, Mar 1 (PRIME) -- Ukrainian energy holding Naftogaz Ukrainy has won a suit against Russia in the Permanent Court of Arbitration in the Hague over losses in Crimea in 2014, Naftogaz Ukrainy CEO Andrei Kobolev said in a news conference on Friday.

“In the evening of the day before yesterday, Naftogaz received a decision of the Hague arbitration court, which considered Naftogaz’ suit against the Russian Federation over lost assets in Crimea and in the shelf zone of the Black Sea. The decision was positive. Firstly, we’ve managed to prove to the court that the arbitration’s jurisdiction covers the case,” he said.

“Secondly, we’ve managed to prove that Russia as a country is guilty of the loss of our assets and it should take the consequences in the form of providing compensation to Naftogaz. We see our losses at about U.S. $5 billion, but the final sum will be defined at a later court hearing.”

The court should discuss compensation at a hearing at the end of 2019 or in early 2020, he added.

Naftogaz Ukrainy previously owned Crimean natural gas company Chernomorneftegaz, but it was nationalized in March 2014 when Crimea joined Russia. The Ukrainian holding and six its affiliates filed the suit to the Hague court in October 2016 basing its claims on a 1998 investment protection agreement between Russia and Ukraine, and the company expects the court to start hearings in May 2018.

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