Ukrenergo files arbitration lawsuit against Russia over assets lost in annexed Crimea

The state-owned operator of Ukraine's integrated power grids, Ukrenergo, has notified Russia of filing with the arbitration court the lawsuit over the assets lost in Crimea amid Russia's annexation of the peninsula in 2014.

"On August 27, 2019, Ukrenergo lodged a lawsuit with the arbitration court to resolve a dispute in line with the UN Commission on International Trade Law (UNCITRAL) Arbitration Rules of December 15, 1976. The next step will be the formation of the arbitration tribunal's composition to consider the dispute," the company said on its website on August 28.

It is noted that the Swiss-based LALIVE law firm is representing Ukrenergo's interests in the dispute with Russia. LALIVE has successful experience in supporting claims by Ukrainian companies against Russia over asset expropriation.

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Ukrenergo claims compensation for Russia's violation of the 1998 agreement between Ukraine's Cabinet of Ministers and Russian government on the promotion and reciprocal protection of investments. The demands also include compensation for damage from the illegal expropriation of Ukrenergo's investment in Crimea and violation of the obligation to guarantee full and unconditional legal protection," the statement said.

Ukrenergo claims arose after Russia seized the company's assets, property, and businesses as a result of the illegal occupation and annexation of Crimea in 2014.

In April 2018, Ukrenergo officially notified Russia's top officials of the investment dispute as part of the 1998 agreement to conduct consultations and talks with the Russian side to resolve the dispute through negotiations, but the latter failed to provide feedback.

As UNIAN reported earlier, in the spring of 2014, Russia seized the Crimean peninsula in violation of international law. Ukrainian Justice Minister Pavlo Petrenko earlier stated that damage from the Russian occupation of Crimea is estimated at UAH 1.8 trillion (US$71.5 billion).

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Acting CEO of Ukrenergo Vsevolod Kovalchuk earlier reported that in the annexed Crimea, the company lost about 15 substations and several thousand kilometers of 220 kV and 330 kV transmission lines.

In April 2018, the company handed official notification over to the Russian side of an investment dispute over Ukrenergo's assets in Russian-occupied Crimea.

In particular, Ukrenergo's power grids in Crimea alone are estimated at about US$1 billion.