“Naftogaz Group” Started Collection of $5 Bln From Russia

by Meifan Honcharuk
Saturday, June 24, 2023
“Naftogaz Group” Started Collection of $5 Bln From Russia

A petition has been filed with the US court to confirm the verdict of the Hague Arbitration Court on the expropriation of Naftogaz's assets in Crimea

On June 23, Naftogaz Ukraine filed a petition with the US district court for the district of Columbia to recognise the verdict of the Arbitral Tribunal of the Permanent Court of Arbitration at The Hague, which on April 12, 2022, ordered Russia to pay Naftogaz Ukraine damages caused by the expropriation of Naftogaz Ukraine assets in Crimea. The amount of compensation is $5 billion.

Under the New York Convention, arbitral awards can be enforced in all countries. Thus, Naftogaz began the process of forced collection of funds on the territory of those states where there are Russian assets.

''Since Russia has not voluntarily paid the funds to Naftogaz as provided for by the award, we intend to leverage all available mechanisms to recover these funds. We are currently working on this in the United States and other target jurisdictions," Naftogaz CEO Oleksii Chernyshov.

If the US court establishes that this case has grounds for cancelling/postponing the recognition/enforcement of the decision of the arbitral tribunal, the execution of the decision is not recognised as mandatory.

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