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The Ukrainian state-owned company Naftogaz has taken the first step towards enforcing the Hague arbitration award that ordered Russia to pay more than $5 billion for the illegal expropriation of the company’s assets in Crimea. This was reported by the company’s press service on 17 April.
According to the report, a court in Paris has granted permission to enforce the arbitral award, paving the way for the recovery of compensation from the Russian Federation’s assets located in France.
“This result is part of our global campaign to enforce the arbitral award,” said Roman Chumak, Chairman of the Board of Naftogaz of Ukraine Roman Chumak.
The company has already registered liens on a number of Russian assets in France totalling more than €120 million. As part of this process, these assets may be seized and sold to partially cover the compensation awarded by the Hague Tribunal.
In addition to France, Naftogaz has made some progress in the UK and Finland, where the process of recognition and enforcement of the arbitral award is also underway.
“We are determined to recover the full amount of compensation and protect the rights of Ukrainian state-owned enterprises in the international arena,” Chumak said.
The arbitration proceedings were initiated in October 2016 after Russia illegally seized Naftogaz Group’s assets in Crimea as a result of the occupation of the peninsula.
In April 2023, the Hague arbitration court ruled that Russia should pay Naftogaz more than $5 billion in compensation for the expropriated property.
Legal proceedings to recover compensation are ongoing in a number of countries, and Naftogaz says the campaign will continue until the tribunal’s decision is fully implemented.
