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French Court Grants Ukraine’s Naftogaz Right to Seize $5B From Russia

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Maryna_kulakova
Maryna Kulakova
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French Court Grants Ukraine’s Naftogaz Right to Seize $5B From Russia
The logo of Naftogaz, state-owned national oil and Gas Company of Ukraine, is seen on a plate at the entrance to the main office in Kyiv. (Source: Getty Images)

A court in Paris has authorized the enforcement of a $5 billion arbitral award in favor of Ukraine’s Naftogaz Group, allowing the company to begin seizing Russian state assets in France.

Naftogaz’s press service reported on April 17 that the ruling enables the enforcement of a 2023 decision by the Hague-based arbitration tribunal, which ordered Russia to compensate Naftogaz for the illegal expropriation of its assets in Crimea.

As part of the enforcement process, Naftogaz has already placed legal liens on Russian-owned assets in France worth more than €120 million (approximately $128 million). This marks the first step in pursuing compulsory recovery under the arbitration award.

“We’re seeing progress in several other jurisdictions as well, including the United Kingdom and Finland,” said Naftogaz CEO Roman Chumak. “Our goal is to recover the full amount and defend the rights of Ukrainian state-owned enterprises on the international stage.”

Naftogaz initiated arbitration against Russia in October 2016, seeking compensation for the unlawful seizure of its Crimean assets, a violation of the Ukraine-Russia investment protection treaty. These assets included subsoil licenses, infrastructure, pipelines, and over 675 million cubic meters of natural gas.

On April 12, 2023, after years of litigation, the tribunal in The Hague ordered Russia to pay over $5 billion in damages. Though Russia initially refused to take part, it later joined the compensation phase. Hearings took place at the Peace Palace and continued as Russia launched its full-scale invasion in February 2022.

Despite the ruling and its confirmation by the Dutch Supreme Court, Russia has refused to pay, prompting Naftogaz to begin a global campaign to enforce the award.

Previously, it was reported that Russia’s oil earnings have dropped to their lowest levels since mid-2023, with exports declining for the third consecutive week and prices falling amid the US-China trade war, according to Bloomberg on April 15.

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