The Helsinki District Court has seized assets belonging to Russia in Finland, including real estate and other assets worth tens of millions of dollars. About this reported “Naftogaz”.
It is noted that the court’s decision was a response to the request:
- JSC “Naftogaz of Ukraine”;
- and five other companies that are part of the Naftogaz Group.
“This decision is part of Naftogaz’s global strategy to collect compensation for losses caused by the seizure of assets of the Group’s companies in the Republic of Crimea in accordance with the decision of the Hague Arbitration. This is also the first publicly known successful seizure of assets outside of Ukraine to enforce an arbitration award in lawsuits filed by Ukrainian companies against Russia regarding the expropriation of property in Crimea in 2014. It is an intermediate step on the way to the actual recovery of assets in favor of Naftogaz Group“, the message says.
Russia, despite the decision of the Hague Arbitration, refuses to voluntarily pay Naftogaz compensation, which is why interest continues to be accrued on the amount owed until full payment.
In October 2016, Naftogaz, together with six other Group companies, initiated proceedings at the Arbitration Tribunal of the Permanent Chamber of the Arbitration Court against Russia, demanding compensation for violations of the Investment Protection Agreement, in particular for the expropriation of strategic energy assets in Crimea in 2014.
In February 2019, the Arbitration Court made a partial decision in favor of Naftogaz, recognizing its jurisdiction in the case and finding that Russia had breached its obligations by illegally expropriating the company’s investments in Crimea.
The second stage of the arbitration aimed to determine the amount of compensation, and in July 2022 the Hague Court of Appeal confirmed the jurisdiction of the Arbitral Tribunal in the case.
On April 12, 2023, the tribunal ordered Russia to pay $5 billion in compensation for damages caused by the seizure of assets in Crimea in 2014.
