Ukraine’s Naftogaz Ukrainy files $2.6 bln suit against Russia

KIEV, Oct 19 (PRIME) -- Ukraine’s energy holding Naftogaz Ukrainy and six its affiliates have initiated U.S. $2.6 billion arbitration proceedings against Russia because of the loss of its Crimean assets, the company said in a statement Wednesday.

The suit was filed in accordance with a bilateral investment agreement between Russia and Ukraine on Monday, the company said.

Naftogaz Ukrainy initiated negotiations with Russia to settle a dispute over its investment in Crimea in February, and said that it will submit a lawsuit to an arbitration court if the dispute is not solved peacefully. The company used to own gas producer Chornomornaftogaz in Crimea but after the peninsula joined Russia in 2014, the company developing gas in the Black Sea and the Sea of Azov was nationalized by the peninsula.

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