A French court has granted permission for the enforcement of a Hague arbitration ruling, which requires Russia to pay US$5 billion in damages to Naftogaz Group, Ukraine's largest national oil and gas company, as a result of the occupation of Crimea.

Source: press service for Naftogaz, as reported by European Pravda

Details: The case concerns compensation for damages caused by the unlawful expropriation of assets belonging to the Naftogaz Group in occupied Crimea, amounting to US$5 billion.

Quote from Naftogaz Group CEO Roman Chumak : "This outcome is part of our global campaign for the enforcement of the arbitration award. It is an extremely important legal victory for Naftogaz of Ukraine and five other companies in the group. It allows Naftogaz to initiate the recovery procedure on the territory of France."

Details: As part of this process, Naftogaz has already registered encumbrances on a number of assets owned by Russia and located in France, with a total value of over €120 million. This is being described as the first step towards the forced enforcement of the arbitration decision.

The French proceedings are being handled by the Paris-based dispute resolution law firm Le 16 Law.

Background:

• In April 2023, the Arbitral Tribunal at the Permanent Court of Arbitration in The Hague ordered Russia to pay US$5 billion to Naftogaz as compensation for damages and loss of property resulting from the occupation of Crimea.
• Arbitral awards can be enforced through a mechanism of forced execution. Therefore, if Russia refuses to comply voluntarily with the court ruling, Naftogaz has the right to initiate the recognition and enforcement process in jurisdictions where Russian assets are located.
• In October 2024, a court in Finland ordered the seizure of specific Russian assets in the country for the purpose of compensating Naftogaz – the first such decision in Europe.

Read more: Finnish precedent: how Helsinki increases chances of getting compensation from Russia

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