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NJSC Naftogaz of Ukraine has provided the Russian Federation with a formal written notification of a dispute for violations of the bilateral investment treaty between Russia and Ukraine on mutual protection of investments, the company reported on its website.
"The dispute arises from the Russian Federation’s unlawful seizure of Naftogaz’s investments in Crimea," a statement reads.
In accordance with the terms of the treaty, Naftogaz has requested consultations and negotiations with representatives of the Russian Federation in an effort to reach resolution of the dispute, as emphasized in the statement. If the dispute cannot be settled, Naftogaz intends to submit the dispute to arbitration, the company said.
As UNIAN reported earlier, in December 2015 Naftogaz of Ukraine hired the U.S. law firm of Covington and Burling LLP to protect the company's interest in litigation concerning lost shelf assets in the annexed Crimea.
The cost of the agreement with the American company is $1.25 million to be paid by the end of 2016.
Earlier, Naftogaz estimated its losses at UAH 15.7 billion due to the lost assets in Crimea after its annexation by Russia. The company stated that it would seek to regain control over the peninsula through international courts and would also seek reimbursement for all incurred losses.
In addition, in October 2014 Naftogaz appealed to the Stockholm Arbitration Court seeking the revision of its natural gas transit contract with Gazprom, as well as compensation from Gazprom for the shortfall in gas transit volumes.