US appeals court allows DTEK to forcibly recover $300 million from Russia for property in Crimea
The US Court of Appeals for the District of Columbia has opened the possibility of enforcing an arbitration award in favor of Ukrainian energy company DTEK in a case involving the loss of assets in Crimea following its occupation by Russia. The court unanimously rejected Russia’s appeal and confirmed that US courts have jurisdiction to consider a request for enforcement of the award in the amount of more than $300 million.
The panel of judges found Russia’s arguments regarding the application of sovereign immunity to be unfounded, noting that the case falls under the arbitration exception provided for by the US Foreign Immunities Act. Thus, DTEK Krymenergo can continue legal proceedings in the US to recover compensation for property lost after the occupation of the peninsula in 2014.
The court separately emphasized that the ruling does not concern the determination of the status of Crimea and does not review the essence of the arbitration award itself. The consideration is limited to the issue of the powers of US courts to ensure its enforcement. The text of the decision states that after Russia’s invasion, Ukrainian companies were forcibly deprived of their “legal, visible and operational” assets without any compensation.
DTEK’s Legal Director Oleksandra Moskalenko called the ruling a “clear and strong signal” that Russia will not be able to avoid responsibility under the guise of sovereign immunity. According to her, the company will continue to use all available legal mechanisms to protect its interests and compensate for losses.
DTEK Group is the largest private investor in Ukraine’s energy sector. The company employs about 55 thousand people, and the total volume of investments since 2005 exceeds 12 billion euros.
The group’s enterprises generate electricity at wind, solar and thermal power plants, distribute and supply electricity to consumers, extract natural gas and coal, trade energy resources on Ukrainian and international markets, and provide energy services for the population and business.
DTEK is 100% owned by SCM Holdings, the ultimate beneficiary and sole shareholder of which is businessman Rinat Akhmetov.
