Naftogaz Files $5bn Suit Against Russia

Ukraine’s state gas group Naftogaz said September 20 that it and six subsidiaries have filed a suit against the Russian government at the Permanent Court of Arbitration in the Dutch capital, The Hague, over Russia's seizure of Naftogaz assets in Crimea.

Naftogaz stated that its loss from the seizure of its assets is estimated at $5bn which it is now seeking to recover from Russia. It said the arbitration tribunal is expected to make its decision before the end of 2018.

The subsidiaries cited are Ukrtransgaz, Chernomorneftegaz, Ukrtransnafta, Gaz Ukrainy, Likvo as well as Ukrgazdobycha.

International law firm Covington & Burling LLP will represent interests of Naftogaz in The Hague arbitration case, the gas group added.

In the first eight months of 2017, Ukraine transported 61.9bn m³ of Russian gas to customers in Europe, which was up 23.4% up on the same period last year and up 45.6% on the same period of 2015.

Related to the annexation of Crimea by Russia in March 2014, Ukrainian companies have already filed 7 lawsuits against Russia.

Ukraine’s prime minister Volodymyr Groysman meanwhile has responded to the resignation late on September 19 of the last two independent directors on Naftogaz’s supervisory board, citing political meddling against a promised unbundling of the company. Groysman said September 20 that planned reforms would continue and be speeded up.

Azerbaijani desk