Permanent Court of Arbitration in The Hague starts to consider Naftogaz v. Russia case over Crimea assets

The case information is posted on the PCA’s site.

Naftogaz refers to the UNCITRAL (United Nations Commission on International Trade Law) Arbitration Rules 1976 and Agreement between the Government of the Russian Federation and the Cabinet of Ministers of Ukraine on the Encouragement and Mutual Protection of Investments, dated 27 November 1998. The statement of claim was registered at the Permanent Court of Arbitration on October 17, 2016. The arbitrators in the proceeding have already been appointed.

The Russian Federation has not appointed any representatives. In a letter to the PCA dated 19 January 2017, the Russian Federation indicated that it “does not recognize the jurisdiction of an international tribunal at the Permanent Court of Arbitration.” 

June 26, the Permanent Court of Arbitration recognized its jurisdiction in a similar dispute initiated by the NJSC Naftogaz of Ukraine and the Stabil Company and began to consider their claims.

October 17, 2016, the NJSC Naftogaz of Ukraine and six its subsidiaries initiated arbitration proceedings against the Russian Federation demanding compensation for the damages.

In February 2016, the NJSC Naftogaz of Ukraine initiated a negotiation process regarding the loss of its assets in Crimea estimated at USD 2.6 billion.

ol