The Arbitration Tribunal at the Permanent Court of Arbitration in The Hague ordered Russia to pay $5 billion in compensation for losses and lost property of Naftogaz in Crimea starting from 2014, Naftogaz CEO Alexei Chernyshev said on Facebook.

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In turn, the press service of NJSC Naftogaz of Ukraine clarified that the decision was made by the court the day before, April 12. At the same time, Russia must fulfill it in accordance with its obligations under international law..

In particular, the Arbitration Tribunal confirmed that Russia must fully compensate for the losses of Naftogaz caused by its illegal seizure of the assets of Naftogaz Group companies in Crimea. At the same time, the amount of such compensation should be equal to the fair market value of Naftogaz assets until the moment of their expropriation..

“Arbitral awards can be enforced through the enforcement mechanism. Therefore, if Russia refuses to voluntarily execute the court decision, Naftogaz has the right to start the process of recognition and admission to enforcement of the decision on the territory of those states where the assets of the Russian Federation are located,"

The amount of compensation established by this decision is the largest amount awarded by an international arbitration tribunal in compensation for Russia's expropriation of assets in Crimea.

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Recall that in October 2016, Naftogaz and six other companies of the Naftogaz Group initiated arbitration proceedings against the Russian Federation on the basis of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the promotion and mutual protection of investments, also known as the Ukrainian-Russian Investment Protection Agreement..

Naftogaz asked the arbitration tribunal to order the Russian Federation to pay compensation for violation of the Investment Protection Agreement, including for the illegal expropriation of Naftogaz’s strategically important energy investments, which became one of the main targets of the Russian Federation in Crimea in 2014.

Oral hearings on jurisdiction and liability were held at the Peace Palace in The Hague in May 2018. In February 2019, the tribunal ruled in favor of Naftogaz.

In July 2022, the Hague Court of Appeal confirmed the jurisdiction of the Arbitration Tribunal in the case.