Hague court orders Russia to pay Ukraine's Naftogaz $5 billion in compensation for losses in Crimea

The Permanent Court of Arbitration in The Hague has ordered Russia to pay $5 billion to Ukraine's state oil and gas monopoly Naftogaz, the company's press service reported on April 13.

This is the compensation for losses caused by the illegal seizure of Naftogaz assets following the annexation of Crimea in 2014.

The court established that the amount of compensation should be equal to the fair market value of Naftogaz's assets before their seizure, according to the report. Russia had insisted that Naftogaz was not entitled to any compensation, but the court disagreed.

"Now Russia must comply with this decision in accordance with its obligations under international law," said Oleksii Chernyshov, the head of Naftogaz Group, as arbitration decisions can be fulfilled through the enforcement mechanism.

The set amount of compensation is the largest awarded by the international arbitration tribunal for Russia's seizure of Ukrainian assets in Crimea, reads the report. Russia will also have to compensate Naftogaz for the costs related to the arbitration proceeding claimed in 2016.

Moscow has not yet commented on the Permanent Court of Arbitration's decision.

In February, Russian proxies in Crimea approved the seizure of hundreds of high-value pieces of Ukrainian-owned real estate on the occupied peninsula.

The Crimean peninsula was illegally annexed by the Russian Federation in 2014 following the triumph of Ukraine's EuroMaidan Revolution, which ousted pro-Russian dictator Viktor Yanukovich.

Court of Appeals annuls decision not to prosecute former Naftogaz CEO

Ukraine’s Court of Appeals of the Chamber of Commerce on March 1 annulled the High Anti-Corruption Court’s decision to rule against arresting former Naftogaz CEO Andriy Kobolev.

Kyiv IndependentThe Kyiv Independent news desk