The CEO of Naftogaz (the largest national oil and gas company of Ukraine) Oleksiy Chernyshov informed that on April 12 2023, the Hague’s Arbitration Tribunal at the Permanent Court of Arbitration ordered Russia to pay Naftogaz $5 billion in compensation for losses caused by the seizure of the assets of the group’s companies in the illegally-annexed Crimea (south of Ukraine) in 2014.
Source: Naftogaz CEO Oleksiy Chernyshov
“The Naftogaz team has won a key victory on the energy front. Despite Russia’s attempts to obstruct justice, the Arbitration Tribunal ordered Russia to compensate Naftogaz for losses of USD 5 billion. This relates to the seizure of our assets in Crimea by Russia in 2014. Russia must now comply with this decision in accordance with its obligations under international law,” explained the CEO of Naftogaz.
Arbitral decisions can be executed through an enforcement mechanism. Therefore, in the event that the Russian Federation refuses to voluntarily comply with the court’s decision, Naftogaz has the right to start the process of recognition and admission to enforce the decision on the territory of those states where the assets of the Russian Federation are located.
“The compensation established by this decision is the largest awarded by an International Arbitration Tribunal as indemnity for the expropriation of assets by Russia in Crimea. In addition, the court ruled that Russia must reimburse Naftogaz for costs associated with the arbitration proceedings,” added Oleksiy Chernyshov.
See also: Russia has damaged more than 350 facilities of Ukraine’s largest national oil and gas company
