QHA | 28 August 2019
Ukrainian energy company Ukrenergo filed lawsuit against Russia due to lost assets in occupied Crimea
The national energy company Ukrenergo submitted claims in a dispute with Russia to the arbitration court regarding the illegal seizure of the company’s infrastructure in the annexed Crimea, according to the press service of the department.
The company claims compensation for violation of the 1998 Agreement between the governments of the countries by Russia on the promotion and mutual protection of investments. As well as compensation for damage from the illegal expropriation of Ukrenergo’s investments in Crimea and violation of the obligation to guarantee full and unconditional legal protection.
The report notes that in April 2018, Russia received official written messages about the investment dispute as part of a bilateral agreement on the mutual protection of investments between Russia and Ukraine.
The company was aiming to conduct consultations and negotiations with representatives of Russia to resolve the dispute through negotiations. But the Russian side did not respond.
In this regard, on August 27, 2019 Ukrenergo submitted the dispute for resolution to the arbitration court in accordance with the Arbitration Rules of the UN Commission on International Trade Law of December 15, 1976 (UNCITRAL).
The next step will be the formation of the composition of the arbitral tribunal to consider this dispute.
The interests of NEC Ukrenergo in a dispute with Russia are represented by the international law firm LALIVE, which has successful experience in supporting claims of Ukrainian companies against Russia in connection with the expropriation of assets.
In July, Ukrainian oil and gas company Naftogaz filed a lawsuit with the Tribunal at the Permanent Court of Arbitration in The Hague demanding Russia pay compensation in the amount of $ 5.2 billion for the expropriation of its assets in the illegally annexed Crimea.
In turn, the Russian Ministry of Justice stated that they did not recognize the legality of all decisions of arbitrations in claims against the Russian Federation related to the annexation of Crimea, due to the alleged lack of jurisdiction of these tribunals to consider such disputes.