KIEV, Jul 31 (PRIME) -- Ukrainian state energy holding Naftogaz Ukrainy has filed a U.S. $5.2 billion suit against Russia in the Permanent Court of Arbitration in The Hague seeking redemption of losses in Crimea after it joined Russia in 2014, the company said in a statement on Wednesday.
“Naftogaz Ukrainy and the companies that comprise the Naftogaz group filed a suit to the tribunal of the Permanent Court of Arbitration in the Hague at the end of June containing claims for compensation of losses from expropriation of Naftogaz group’s assets in Crimea. The Naftogaz group asks the court to oblige the Russian Federation to pay $5.2 billion to the plaintiffs,” the statement read.
The court is to rule before the end of 2020, the company said.
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 a suit to the Hague court over the allegedly lost assets in October 2016 basing its claims on a 1998 investment protection agreement between Russia and Ukraine.
Naftogaz Ukrainy CEO Andrei Kobolev said in March 2019 that the company won the suit, and the company’s Executive Officer Yury Vitrenko said later that the company planned to demand redemption of $8 billion under the case, or principal debt of $5 billion and interest. The Russian Justice Ministry refused to recognize the decision by the Hague arbitration court as it thought the court had no legal authority to decide in such cases.
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