Analysis

Naftogaz files lawsuit against Russia over seized Crimean assets

naftogaz

Ukrainian state gas company Naftogaz has filed a lawsuit at the Permanent Court of Arbitration at the Hague, demanding 5.2 billion US dollars from Russia for the company’s assets that were seized during the annexation of Crimea.

The Hague court is expected to make a decision about potential compensation for Naftogaz’s losses no later than the end of 2020.

The Ukrainian media reports that the PCA ruled in March that Russia had violated certain provisions of the investment protection agreement between the two countries. Russia’s ministry of justice has so far refused to recognise the decision.

In April, the International Court of Arbitration ordered Russia to pay compensation for seizing the assets of Ukrnafta, one of Ukraine’s state oil companies.