Russia refutes Hague court ruling on Naftogaz assets in Crimea

MOSCOW, Mar 4 (PRIME) -- Russia refuses to recognize the decision by the Hague arbitration court on Ukraine’s Naftogaz Ukrainy claims over allegedly lost assets in Crimea as the court does not have any legal authority to settle such cases, the Russian Justice Ministry said late on March 1.

“Russia did not participate in the relevant proceedings and does not recognize the partial decision due to the absence of arbitration jurisdiction to consider the claim of Naftogaz against the Russian Federation,” the ministry said.

The ministry said it will take all necessary measures to ensure the representation and protection of Russia’s interests in connection with the Hague court decision.

Naftogaz Ukrainy CEO Andrei Kobolev said earlier on March 1 that the company won a suit against Russia in the Permanent Court of Arbitration in the Hague over losses in Crimea in 2014. Naftogaz Ukrainy’s Executive Officer Yury Vitrenko said on his Facebook page that the company plans to demand redemption of U.S. $8 billion from Russia under the case, or the principal debt of $5 billion and interest.

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.

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