“Naftogaz of Ukraine” and its six subsidiaries 17 Oct initiated arbitration proceedings in which demand from Russia of compensation of 2.6 billion dollars for remaining in the Crimea assets. After joining the Peninsula to Russia, they were nationalized. In a press-service of the company noted that this amount is only an estimate.
The court asked “Naftogaz of Ukraine”, “chernomornaftogaz”, “Ukrtransgaz”, “ukrgazvidobuvannya”, “Ukrtransnafta”, “Gas of Ukraine” and “of likvo”. “Naftogaz of Ukraine” initiated the production in accordance with the agreement between the Cabinet of Ministers of Ukraine and the government of the Russian Federation on assistance to implementation and mutual protection of investments, better known as the Russian-Ukrainian bilateral investment agreement”, – said in the release.
According to the Ukrainian company, “the scheme used by the Russian Federation, among other actions, involves the steps to the formal nationalization of oil and gas assets of “Naftogaz” in the Crimea, including the armed seizure of drilling platforms and the transfer of almost all Crimean assets of Naftogaz the Russian state company”.
Press Secretary of the Russian President Dmitry Peskov said that the Kremlin will not comment on the reports about the lawsuit against “Naftogaz” to the Russian Federation, as first, the lawyer must analyze the documents.
As notes “Interfax”, in February 2016, “Naftogaz of Ukraine” has initiated the negotiation process regarding the loss of their assets in the Crimea, giving Russia a notice of investment dispute under the bilateral agreement on mutual protection of investments between the two countries. The company raised Covington & Burling LLP (new York, USA) to protect its interests in the framework of litigation for the loss of Crimean assets.
“Naftogaz of Ukraine”, 100% of which belongs to the Cabinet of Ministers of Ukraine unites the largest oil and gas companies of the country. The holding is a monopolist on transit and storage of natural gas in underground storage, and oil transportation by pipeline transport through the territory of the country.
In January 2016 the largest oil and gas company of Ukraine “Ukrnafta” and a number of Ukrainian oil companies with assets remaining in the Crimea, appealed to the international arbitration court in the Hague with the claim about protection of their investments against Russia.
With the actions against Russia in international arbitration also appealed to the company “Kirovohrad-Nafta”, “Crimea-petrol”, “Person”, “trade trust”, “eleftheria”, “TCF Satek”, “Rustel”, “Rubinar”, Stemv Group, Novel-Estate and Stabil.
Plaintiffs refer to the regulations of the UNCITRAL (United Nations Commission on international trade law) and the agreement between the governments of Russia and Ukraine from 27 November 1998 on the protection of investments.
A controlling stake (50% plus one share) of “Ukrnafta” belong 100% to the state concern “Naftogaz of Ukraine”. The state legally controls “Ukrnafta”, but at the meetings of the Supervisory Board and the Board of shareholders, the government can’t solve without the consent of the minority shareholder group “Privat” Igor Kolomoisky, which owns 43% of “Ukrnafta”.