Naftogaz expects arbitration hearing on Crimea asset losses as early as May

National Joint-Stock Company Naftogaz of Ukraine and six companies that are part of Naftogaz Group are awaiting hearings in May on the amount of compensation for losses as part of the arbitration process launched against Russia regarding the seizure of the company's assets in Crimea. That's according to the company press service. "Naftogaz and six companies that are part of the Group demand compensation from Russia for losses inflicted by the illegal expropriation of Crimean assets. We estimate the amount of losses plus interest at approximately $8 billion. An oral hearing on the amount of compensation will be held in May 2020 in The Hague," the report said. According to the press service, a final decision on the amount of compensation is expected by mid-2021. As UNIAN reported earlier, as a result of Russia's annexation of Crimea in 2014, Naftogaz's subsidiary Chornomornaftogaz lost its main assets (in particular, Petro Hodovanets and Ukraina drilling platforms), as well as access to natural gas deposits in the Black Sea offshore zone. To protect its interests, Naftogaz in October 2016 initiated arbitration in accordance with the agreement between the Cabinet of Ministers of Ukraine and the government of the Russian Federation on the promotion and mutual protection of investment, better known as the Russian-Ukrainian bilateral investment agreement. On September 15, 2017, Naftogaz reported that the state-run holding had filed a lawsuit against Russia demanding US$5 billion in compensation of losses caused by the occupation. Taking into account the expected interest, Naftogaz's claim is estimated at US$8 billion.

Naftogaz expects arbitration hearing on Crimea asset losses as early as May

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