Tatneft files suit to US court to make Ukraine redeem $144 mln

MOSCOW, Apr 3 (PRIME) -- Russian oil company Tatneft has filed a suit to the U.S. District Court for the District of Columbia in order to enforce an arbitration award under which Ukraine has to redeem U.S. $144 million to the company, Tatneft said in a statement on Monday.

“Ukraine’s violation of a bilateral agreement on promotion and protection of mutual investments between Russia and Ukraine and a deprivation of Tatneft of its share in the country’s largest oil refinery in the city of Kremenchug became the reason for the arbitration award totaling $144 million, or $112 million plus accrued interest,” the company said.

In 1994, company Ukrtatnafta was created to solve problems with supplies of crude to the Kremenchug refinery. Ukraine contributed the refinery to the company, while the Russian republic of Tatarstan contributed shares of producing companies and money. In 2007, Tatarstan and Tatneft lost control over Ukrtatnafta.

In 2008, Tatneft launched an arbitration dispute against Kiev demanding compensation for reducing the stakes of companies close to Tatneft and of the republic of Tatarstan in Ukrtatnafta to almost zero. Ukraine’s actions favored raising the stake and operational control over Ukrtatnafta by Dnipropetrovsk Region Governor Igor Kolomoisky, Tatneft said previously.

In August 2014, the International Commercial Arbitration Court obliged Ukraine to pay U.S. $112 million in compensation to Tatneft, but Ukraine filed an appeal against the decision. In November 2016, the Paris Court of Appeals upheld two arbitration rulings that ordered Ukraine to redeem $112 million plus interest to Tatneft. In March 2017, Ukraine filed a cassation appeal against the latest decision.

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