The Hague court orders russia to pay $5bn in compensation for Naftogaz's losses in Crimea
The compensation is the largest amount awarded by an international arbitral tribunal
The arbitral tribunal at the Permanent Court of Arbitration in The Hague has ordered russia to pay $5 billion in compensation for losses and lost property of Naftogaz in Crimea.
Source. The company's press service.
It is noted that this refers to the consequences of russia's seizure of our assets in Crimea in 2014. Now russia must comply with this decision in accordance with its obligations under international law.
"Arbitral awards can be enforced through the enforcement mechanism. Therefore, in case russia refuses to voluntarily enforce the award, in accordance with the New York Convention of 1958, Naftogaz has the right to start the process of recognition and admission to enforcement in the territory of those states where the assets of the russian federation are located," the statement says.
The court ruled that the amount of such compensation should be equal to the fair market value of Naftogaz's assets before their expropriation. Despite russia's insistence that the company is not entitled to any compensation for the expropriation of its assets, the Arbitral Tribunal disagreed with that statement.
The amount of compensation established by this award is the largest amount awarded by an international arbitration tribunal as compensation for russia's expropriation of assets in Crimea.
In addition, the court ruled that russia should reimburse Naftogaz for the costs associated with the arbitration proceedings.
Background. The International Criminal Court will open the first cases of war crimes against russians.
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