Naftogaz intends to sue Russia for $5.2 billion for Crimea

Naftogaz Ukrainy asks to recover $5.2 billion from Russia - the company and six of its subsidiaries estimated the losses due to the transfer of the Crimean peninsula under the control of Russia in this amount. With such a statement, they appealed to the tribunal at the Permanent Court of Arbitration in The Hague. The company expects a decision by 2020.

In March 2019, Naftogaz announced that the tribunal in The Hague supported its position and recognized Russia's fundamental responsibility for the loss of the company's assets. The Russian Ministry of Justice replied that Russia did not participate in the courts in The Hague and therefore does not recognize its decisions.

Many or few?

Prior to the annexation of Crimea by Russia, Naftogaz owned the property of Chornomorneftegaz, Ukrtransgaz and four other subsidiaries on the peninsula - 17 fields, drilling rigs, a gas transmission system, an underground storage facility and a technological fleet.

• The amount of damage has not yet been called, and it is very high. Last year, Naftogaz valued the entire gas transportation system of Ukraine at $12.5 billion.
• Ukraine estimated the total damage from Russia's actions in Crimea and Donbas at $45 billion.
• The Crimean authorities estimated the damage for 23 years of Crimea being a part of Ukraine at 2.5 trillion rubles.
• The new lawsuit will become an additional irritant in future negotiations on gas transit through Ukraine. The current contract expires at the beginning of 2020, and, according to the latest data, the Russian side intends to extend it for no more than a year on the same terms. Ukraine and the EU are against.

Read also “A year would be enough for us”: Russia does not want a long contract for gas transit through Ukraine

precedents

• International arbitration has already satisfied the claims of Ukraine against Russia regarding compensation for Crimea: the court decided to pay about $160 million in the Everest Estate lawsuit and $1.3 billion in the Oschadbank lawsuit (all these are Ukrainian state structures).
• The court in The Hague also supported the claim of Privatbank, which belonged to oligarch Igor Kolomoisky during the annexation of Crimea (compensation is about $1 billion, the amount has not yet been assigned), and its own Belbek airport (they are asking for $15 million, the amount has not been assigned).