“As it became known, today the Paris Court of Appeal rejected the award of the Permanent Court of Arbitration of November 26, 2018, in the case of Oschadbank v. the Russian Federation to compensate for the losses incurred in Crimea caused by the annexation of the peninsula. Oschadbank considers such a decision of the Court of Appeal to be erroneous from the point of view of law and contrary to the established case law both in France and in other European countries. The Bank plans to appeal against this ruling immediately,” the press service of the Oschadbank informed on March 30.
As noted, the Paris Court of Appeal did not take into account the specifics of protecting the rights of foreign investors in accordance with international agreements and their relationship with the remedies offered by arbitration. In addition, the correctness of the application of procedural law and the scope of powers of the appellate court are currently being considered.
“We are confident that the judgment of the Court of Appeal will be overturned in the next instance and the award of the Permanent Court of Arbitration of November 26, 2018, on compensation for losses caused by Russia’s annexation of Crimea will remain in force, as was done in other investment cases involving the Russian Federation,” the press service stressed.
As a reminder, the Paris Court of Appeal upheld a position of the Ministry of Justice of the Russian Federation about the absence of jurisdiction in arbitration on the $1.3 billion claim lodged by the Ukrainian Oschadbank.