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  • International Arbitral Tribunal starts proceedings on the loss of Ukrenergo’s assets in Crimea

     The Arbitral Tribunal in Paris (France) on 16 July 2020 constituted to hear the case about the unlawful seizure by the Russian Federation (RF) of NPC Ukrenergo’s infrastructure in the AR of Crimea.

    The arbitration is conducted under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRIAL) of 15 December 1976. In accordance with the Rules, the Tribunal was constituted on 27 March 2020. It is composed of the Presiding Arbitrator — the Rt. Hon. Lawrence Collins; the Arbitrator appointed by NPC Ukrenergo — D. Brian King; and the Arbitrator appointed by the RF — Gabriel Bottini. The place of the arbitration is Paris.

    In the framework of the case Ukrenergo seeks compensation for Russia’s violation of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the Encouragement and Mutual Protection of Investments dated 1998, in particular, for Russia’s seizure of Ukrenergo’s trunk power grids and other objects during the annexation of Crimea. The claims also include the compensation for the damage caused by the unlawful expropriation of Ukrenergo’s investments in Crimea and the violation of the obligation of granting full-fledged and unconditional legal safeguards.

    As of today, the Arbitral Tribunal rejected Russian application to allow them to file a request for bifurcation of proceedings into a jurisdictional phase and a merits phase prior to Ukrenergo’s filing its statement of claim to the Tribunal. The procedural calendar for the remainder of the arbitration will be established after the Tribunal has taken its decision on the bifurcation of the case.

    As advised by Maksym Yurkov, member of NPC Ukrenergo’s Management Board, the value of assets in dispute will be estimated following their evaluation.

    It is to be recalled that in April 2018 NPC Ukrenergo in pursuance of the existing procedure of proceedings, filed requests for the out of court settlement of the dispute to the RF representatives. Then in August 2019, NPC Ukrenergo informed the Russian Federation  about referring to the Arbitration Tribunal its claims in the dispute on the assets lost in Crimea.

    NPC Ukrenergo’s interests in the dispute against Russia are represented by the international law firm LALIVE with its headquarters in Switzerland. LALIVE has wide international experience in the energy and mining sectors and, specifically, a successful track record in assisting with claims regarding assets expropriation filed by Ukrainian companies against Russia.


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