Court allows Oshchadbank to recover from Russia over $1 bln for assets lost in Crimea

 “Having studied the case files, the Court rules that the claim can be sustained,” the court ruling reads.

On July 17, the Court sustained the claim of the State Savings Bank of Ukraine (Oshchadbank) and gave permission pursuant to the decision of the International Commercial Arbitration Court (Paris, France) of November 26, 2018 to recover from the Russian Federation (legally represented by the Justice Ministry of the Russian Federation) $1.1 billion as a compensation for the expropriation of the Oshchadbank’s assets in Crimea.

In addition, the Kyiv Court of Appeal granted the writ of execution to recover from the Russian Federation the identified sum plus interest since March 2014 [when Russia annexed Ukrainian Crimea] until Russia clears arrears in payment in full (at the US Dollar LIBOR interest rate plus 2%).

On November 26, 2018, the Permanent Court of Arbitration in The Hague sustained the claim of the Oshchadbank over the compensation for damages incurred as a result of the annexation of Crimea by the Russian Federation. The hearing was held in accordance with the 1976 Arbitration Rules of the United Nations Commission on International Trade Law and the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on Promotion and Mutual Protection of Investments. The amount of compensation totals $1.3 billion plus interest accrued since the moment of judgment was delivered till the actual compensation. However, Moscow did not recognize the corresponding ruling of the Permanent Court of Arbitration.

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