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ECHR rejects complaints of Ukrainian state-owned enterprises against Russia

The European Court of Human Rights has dismissed the complaints of three Ukrainian state-owned enterprises that sued Russia over the nationalization of their property during the temporary occupation of Crimea.

The applicants in the cases were OJSC Feodosia Shipbuilding Company More, VO Yuzhny Machine-Building Plant named after O.M. Makarov, and SE Progress. The court declared their applications inadmissible.

In its judgment, the ECHR explained that its jurisdiction extends to cases involving individuals or non-governmental organizations. At the same time, the applicant companies, according to the court, do not fall into this category.

The ECtHR noted that an organization can be considered governmental if it participates in the exercise of state authority, performs public functions under state supervision, or does not have sufficient institutional and operational independence from the State.

The Court concluded that three Ukrainian enterprises belong to government organizations. Although formally only two companies are state-owned, in the case of the Feodosia Shipbuilding Company “More” the ECtHR indicated that its privatization did not actually take place.

As a result, the Court found the claims incompatible ratione personae with the provisions of the Convention and dismissed them. This means that the complaints will not be considered on the merits within the framework of these proceedings.

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