UK recognises Naftogaz Group’s USD 5 Billion BIT award against Russia.

20 Dec 2023, 10 mins ago

Yesterday, Naftogaz published a press release stating that on 5 December 2023, the High Court of Justice of England and Wales made an order recognising a pervious UNCITRAL award.

The final UNCITRAL award, granted in April 2023, ordered that Russia must pay Naftogaz USD 4.2 billion in compensation for losses caused by the seizure of Naftogaz’s assets by Russia in the Crimea annexation in 2014. Naftogaz have stated that with accumulating interest, the award value is now in the region of USD 5 billion.

The proceedings were initiated by Naftogaz Group in October 2016. In February 2019, the Tribunal confirmed its jurisdiction and held Russia liable for illegally expropriating Naftogaz’s investments in breach of the Bilateral Investment Treaty between Ukraine and Russia. In July 2022, the Hague Court of Appeal reaffirmed the Tribunal’s jurisdiction over the matter. The hearings over quantum were finalised in April 2023.

Naftogaz have stated that they are seeking further recognition for enforcement in the US and other target jurisdictions, with the US District Court in the District of Columbia hearing taking place on 24 February 2024.

Russia’s assets are largely tied up in various sanctions across the globe. This leaves great scope for lawyers to enforce Tribunal awards once they are recognised. Gherson can help you assess your initial claim as an investor and follow it through enforcement until your claim is satisfied.

Gherson’s Litigation and Arbitration Team are highly experienced in advising on international investor-state disputes. Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on XFacebook, or LinkedIn to stay up-to-date.

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