Russia to challenge Naftogaz UkraineТs Crimea loss calculation
MOSCOW, Aug 1 (PRIME) -- Russia plans to challenge a U.S. $5.2 billion estimate of losses that Ukrainian energy holding Naftogaz Ukrainy says incurred from expropriation of assets in Crimea when it joined Russia in 2014, a spokesperson for the Justice Ministry told PRIME late on Wednesday.
УIn the framework of the arbitration hearing, the Russian Federation submitted a request for participation in the arbitration process, having a goal in mind to revise the decision on the jurisdiction among other things. The Russian Federation also plans to challenge the estimate of losses submitted by Naftogaz Ukrainy and other plaintiffs under this case,Ф the spokesperson said.
Moscow does not acknowledge legitimacy of the arbitration decisions made under suits of Ukrainian companies and individuals over CrimeaТs joining with Russia due to an obvious lack of jurisdiction of arbitration courts over the cases, the spokesperson said.
Naftogaz Ukrainy said it had filed the suit in the Permanent Court of Arbitration in the Hague seeking redemption of losses in Crimea, and that the court was to rule before the end of 2020.
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 companyТs 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.