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Dutch Supreme Court dismisses Russia's appeal in Naftogaz's $5 billion arbitration case

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Dutch Supreme Court dismisses Russia's appeal in Naftogaz's $5 billion arbitration case
A man walks past the Naftogaz logo of the national oil and gas company Naftogaz of Ukraine seen at the entrance to the company's office in Kyiv. (Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) // UEW

The Supreme Court of the Netherlands has rejected Russia's appeal against the Hague Arbitration Court's ruling requiring Moscow to pay $5 billion in damages to Naftogaz, the Ukrainian state-owned energy company said on Dec. 13.

Russia was ordered to pay the sum as compensation for misappropriated assets in occupied Crimea.

The tribunal ruled in February 2019 that Russia had expropriated Naftogaz's assets in Crimea in violation of the bilateral investment agreement between Ukraine and Russia.

This marks the second definitive ruling by Dutch courts confirming the validity of the Hague arbitration tribunal's partial award.

Following the 2019 ruling, the tribunal determined the damages in April 2023, ordering Russia to pay $5 billion. Despite the ruling, Russia continued to dispute the decision.

The assets in question were seized following Russia's illegal occupation of Crimea in March 2014, which was carried out after a sham referendum held under military occupation and without international oversight.

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Tim Zadorozhnyy

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Tim Zadorozhnyy is a reporter at the Kyiv Independent covering foreign policy, U.S.-Ukraine relations, and political developments across Europe and Russia. He studied International Relations and European Studies at Lazarski University and Coventry University. Tim began his journalism career in Odesa in 2022 as a reporter for a local television channel. He later spent a year and a half at the Belarusian independent media outlet NEXTA, first as a news anchor and later as a managing editor. He is fluent in English, Ukrainian, and Russian.

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