Naftogaz Group received permission from the District Court of Vienna (Austria) to enforce an arbitration award against Russia (“Crimean Award”) in the amount of over 5 billion US dollars.
Points of attention
- Naftogaz Group received a positive decision from an Austrian court to enforce an arbitration award against Russia in the amount of over 5 billion US dollars, leading to the recovery of 120 million euros for the illegal seizure of property in Crimea.
- The court allowed encumbrance of more than 20 Russian real estate properties in Austria for sale by auction as part of the enforcement process.
Naftogaz received a positive decision from an Austrian court regarding the recovery of money from Russia
In particular, the court allowed encumbrance of more than 20 Russian real estate properties in Austria, which will be sold through auction.
The total value of these assets exceeds 120 million euros.
Similar actions are ongoing in other jurisdictions.
Another practical step towards recovering over $5 billion from Russia for illegally seized assets of the Naftogaz Group in Crimea. Similar actions are ongoing in other jurisdictions. Russia will pay for everything. Sooner or later. Definitely! — said Serhiy Koretsky, Chairman of the Board of Naftogaz of Ukraine.
In October 2016, Naftogaz initiated arbitration proceedings against Russia, demanding compensation for Moscow's illegal seizure of the Group's assets — in violation of a bilateral investment protection treaty between Ukraine and Russia.
The list of assets included special permits for the use of subsoil, equipment and infrastructure, rights to operate pipelines and gas storage facilities, ownership interests in gas pipelines, and over 675 million cubic meters of gas in underground storage facilities.
After years of arbitration proceedings, on April 12, 2023, a tribunal in The Hague ordered Russia to pay Naftogaz over $5 billion for violating the terms of the contract.
This payment amount, for which there is already a Final Arbitration Award, remains the largest among all investor claims filed by Ukrainian companies regarding Russia's illegal actions in Crimea.
Despite the arbitration award and the ruling of the Supreme Court of the Netherlands, Russia refuses to pay Naftogaz the amount awarded. Naftogaz has therefore initiated an international collection campaign. The main goal is to ensure that the arbitration award is enforced in jurisdictions where Russia has assets.
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