Due to Crimean annexation
Russia should pay Ukrainian company billions in compensation
04/13/2023, 06:18 p.m
With the annexation of Crimea by Russia in 2014, Ukraine not only lost land. Businesses also lose some of their assets, and therefore revenue. The Permanent Court of Arbitration is now awarding the Naftogaz group enormous compensation.
The Permanent Court of Arbitration in The Hague has awarded the Ukrainian state-owned company Naftogaz $5 billion for losses in Crimea, which was annexed by Russia. Moscow should pay the equivalent of around 4.5 billion euros “for losses and lost Naftogaz property” on the peninsula, the company announced on Twitter. The court based in the Netherlands itself usually does not provide any information about the course of the proceedings or the result – unless both parties agree to publication.
Russia illegally annexed Ukraine’s Crimea in 2014. Naftogaz then initiated arbitration proceedings in 2015 and demanded compensation. Specifically, it is about plants, gas pipelines, ships and above all the natural gas and oil deposits on and off the peninsula in the Black Sea, which are now controlled by Russia. According to information from Kiev, Russia has produced up to two billion cubic meters of natural gas from Naftogaz deposits every year since the annexation.
In initiating the proceedings, Naftogaz referred to a joint agreement between Russia and Ukraine on the protection of investments. Russia initially rejected the procedure, but took part in the negotiations from 2019. In 2021 there were non-public hearings on the case.
Kremlin spokesman is buttoned up
When asked about the arbitration decision by journalists, Kremlin spokesman Dmitry Peskov simply said: “Our specialists who deal with protecting our rights in this matter will now analyze it and decide on further steps.”
The Permanent Court of Arbitration, based in the Peace Palace in The Hague, was established in 1899 to resolve international conflicts peacefully. He is not affiliated with the United Nations. The court makes itself available as a mediator in disputes.