REUTERS
Russia argues that it owes Naftogaz nothing despite it does not dispute that it unlawfully expropriated Naftogaz's assets.
National Joint-Stock Company Naftogaz of Ukraine says the company and six of its subsidiaries have submitted their Reply Memorial on Quantum in the Permanent Court of Arbitration proceedings against the Russian Federation over the seizure of assets in occupied Crimea, responding to Russia's Counter-Memorial on Quantum.
"In its Reply Memorial, Naftogaz further substantiates its claim for compensation for its assets that the Russian Federation unlawfully expropriated in Crimea in March 2014 – damages valued at approximately US$8 billion, including interest," the company's press service said on February 17.
"Earlier, the Tribunal found that the Russian Federation had breached a number of [Bilateral Investment Treaty] BIT provisions by the expropriation of Naftogaz group's assets in Crimea," the report said.
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Despite Russia's appearance in the arbitration in January 2017, it refused to actively participate in the proceedings for nearly three years. Thereafter, Russia submitted its Counter-Memorial in December 2019, but did not put forward any alternative measure of damages.
"Instead, Russia argued that it owes Naftogaz nothing despite that Russia does not dispute that it unlawfully expropriated Naftogaz's assets," the press service added.
As UNIAN reported earlier, as a result of Russia's annexation of Crimea in 2014, Naftogaz's subsidiary Chernomorneftegaz 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.
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.