On October 20, 2020, NPC Ukrenergo filed its Statement of Claim in the arbitration proceedings it initiated against the Russian Federation concerning the illegal expropriation of the Company’s infrastructure facilities in the territory of the Autonomous Republic of Crimea. The compensation NPC Ukrenergo seeks from the Russian Federation for the expropriated investments currently amounts to 527.53 million euros, including interest (94.61 million euros as of 20.10.2020).
The arbitration against the Russian Federation was initiated for Russia’s violation of the 1998 Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments. Russia’s seizure of the trunk power grid and other NPC Ukrenergo facilities during the occupation of Crimea constituted an illegal expropriation of Ukrenergo’s investments in Crimea and a breach of the obligation to guarantee full and unconditional legal protection of these investments.
The arbitral tribunal in the case was constituted on March 27, 2020. It is composed of the Right Honourable Lawrence Collins (presiding arbitrator), Mr. D. Brian King (the arbitrator appointed by NPC Ukrenergo), and Prof. Gabriel Bottini (the arbitrator appointed by the Russian Federation). The arbitration is conducted in accordance with the UNCITRAL Arbitration Rules (1976) and is seated in Paris.
NPC Ukrenergo is represented in the matter by LALIVE international law firm, headquartered in Switzerland. LALIVE has extensive international experience in the energy and mining industries, including successful experience in supporting Ukrainian companies’ claims against the Russian Federation in connection with assets expropriation.
Prior to the annexation of the peninsula, a separate subdivision of Krymska Power System of NPC Ukrenergo had operated on the territory of the temporarily occupied Autonomous Republic of Crimea, maintaining more than 1,300 km of trunk power lines and 17 high-voltage substations. In Crimea, there was also a health and recreation complex “Semydviria”, a corporate venue “Energetyk”, and a production enterprise “Pivdenenergoprom”.
You may be interested
Ukrenergo has signed three loan agreements with state-owned banks in the amount of UAH 10.25 billion in order to settle the debt to the SOE Guaranteed Buyer. The debt accumulated during […]
Four new phases of autotransformer (AT-3) manufactured by the South Korean company HYUNDAI HEAVY INDUSTRIES CO were delivered to the 400 kV Mukacheve substation in the western region. It is […]