We are talking about the compensation of Naftogaz for the losses and loss of property in the temporarily occupied Crimea.
Naftogaz applied to a US court to recover $5 billion from Russia to enforce the arbitration award in The Hague. This was reported on the company’s website on Friday, June 23.
“NAC Naftogaz of Ukraine and five other group companies filed a petition in the US District Court of the District of Columbia to confirm the decision of the Arbitration Tribunal at the Permanent Court of Arbitration in The Hague, which ordered Russia to pay $ 5 billion (including interest) in compensation for losses and lost property of Naftogaz in Crimea”, the message said.
The company noted that such a petition was made possible by the fact that arbitral awards can be enforced through an enforcement mechanism. Therefore, according to the New York Convention of 1958, Naftogaz has the right to initiate the process of recognition and entry into the execution of the decision in the territory of the states where the assets of the Russian Federation are located.
Under US law, confirmation of the award is required unless the court determines that one of the limited grounds for refusing or delaying the recognition or enforcement of the award set forth in the New York Convention exists.
At the same time, the interest provided for the non-payment of funds in accordance with the arbitral award continues to accrue until full payment of compensation by court decision.
As you know, on April 12, 2023, the Arbitration Tribunal at the Permanent Court of Arbitration in The Hague ordered Russia to pay $5 billion in compensation for the damage caused by the seizure of the assets of the group companies Naftogaz in the Autonomous Republic of Crimea in 2014. The arbitral award came after hearings to determine the amount of compensation concluded in March 2022 amid Russia’s widespread invasion of Ukraine.
It was previously reported that Naftogaz agreed to restructure Eurobonds maturing in July 2022 and November 2026.
It was also learned that state auditors will examine Naftogaz in the second half of this year.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.