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Naftogaz will demand $2.6bn from Russia for stolen assets in Crimea

Staff Writer |
Naftogaz Ukrainy and its six subsidiaries initiated arbitration proceedings against the Russian Federation.

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The requirement is to reimburse for losses caused by the illegal seizure of the group's assets in Crimea, the press service of the state holding has told Interfax-Ukraine.

"Naftogaz has initiated proceedings in accordance with the agreement between the Cabinet of Ministers of Ukraine and the government of the Russian Federation on promotion and mutual protection of investments, better known as the Russian-Ukrainian bilateral investment agreement. Naftogaz preliminarily estimated the damage to the group at $2.6 billion," the report reads.

According to the state holding, the matter concerns the property of Naftogaz, Chornomornaftogaz, Ukrtransgaz, Ukrgazvydobuvannia, Ukrtransnafta, Gaz Ukrainy and Likvo.

"After the illegal invasion of Crimea and the occupation of the peninsula in 2014, the Russian Federation applied an ambitious and well-coordinated scheme of depriving Ukrainian companies of their property without paying compensation.

"In Crimea Naftogaz had several valuable energy assets, the seizure of which by the Russian side violates the bilateral investment agreement, which requires the Russian Federation to respect and protect Ukrainian assets, including those located in Crimea," the holding said.

Naftogaz earlier declared its plans to seek to regain control over its assets lost because of Russia's occupying Crimea and have all losses compensated for through international judicial institutions.

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