Ukrainian Naftogaz sues Russia for $5.2 billion for loss of assets in Crimea

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KIEV – The Ukrainian energy company Naftogaz filed a lawsuit against Russia in the Permanent Arbitration Court in The Hague demanding compensation of $5.2 billion for the loss of its assets in the Crimea, the company said.

“Naftogaz Ukraini and the companies of the Naftogaz group at the end of June filed with the Permanent Court of Arbitration in The Hague a claim on compensation for losses suffered by the expropriation of the assets of the Naftogaz group in Crimea,” the statement said.

The note states that “the Naftogaz group asks the Court to order the Russian Federation to pay in favor of the plaintiffs $5.2 billion.”

“The Court is expected to announce its decision on compensation of losses before the end of 2020,” he said.

However, Russia does not recognize the decision of the Hague Court on the demand of the Ukrainian oil company Naftogaz, the press service of the Russian Ministry of Justice told Sputnik.

“The Russian Federation did not participate in the litigation and does not recognize the incomplete decision because the arbitration has no jurisdiction to examine the lawsuit of Naftogaz and others against Russia,” the agency said.

The Ministry of Justice added that it will take all possible measures to defend Russian interests in relation to the judicial resolution.

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On March 1, Naftogaz president Andréi Kobolev announced that the company won the lawsuit against Russia in which he claimed compensation for the loss of his assets in the Crimea and awaits a court decision on the specific amount at the end from 2019 or early 2020.

The executive director of the oil company, Yuri Vitrenko, said before that the company expects to claim 8 billion dollars, including interest accrued under the case.

Crimea separated from Ukraine and finally reunited with Russia after holding a referendum in March 2014 in which more than 96% of voters supported this option.

The popular consultation took place a month after the coup d’etat that took place in Ukraine and that triggered an internal armed conflict in the east of that country.

The Russian Government has repeatedly stated that the people of Crimea, in a democratic manner and in full compliance with international law and the Charter of the United Nations, voted in favor of unification with Russia.

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