Naftogaz seeks enforcement for Russia to pay $5bn
Naftogaz. Photo via Depositphotos

Ukraine’s state energy firm Naftogaz has filed a motion to a US court to recover USD 5 billion an arbitration earlier ordered Russia to pay for damages incurred by the annexation of Crimea.

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In a statement, Naftogaz said it, together with five companies of Naftogaz Group, had filed with the US district court for the district of Columbia "to confirm the earlier award by the arbitral tribunal of the Permanent Court of Arbitration at The Hague".

"Since Russia has not voluntarily paid the funds to Naftogaz as provided for by the award, we intend to leverage all available mechanisms to recover these funds. We are currently working on this in the United States and other target jurisdictions," Oleksiy Chernyshov, Naftogaz CEO, was quoted as saying.

Under US law, confirmation of the award is mandatory unless the court establishes the existence of causes to refuse or delay recognition or enforcement of the award set out in the 1958 New York Convention.

"Interest for non-payment of funds in accordance with the award continues to accrue until the full payment of compensation under the award," Naftogaz notes.

In April, the tribunal in The Hague ordered Russia to pay Ukraine’s state energy firm Naftogaz USD 5 billion for illegally seized assets in Crimea.

NaftogazCrimeaOleksiy Chernyshovarbitration