The Hague orders Russia to pay Naftogaz $5 billion in compensation for lost property in Crimea

This is stated on the Naftogaz website.

The court has confirmed that Russia must fully compensate Naftogaz for the losses caused by the illegal seizure of assets belonging to Naftogaz Group companies in Crimea.

Oleksiy Chernyshov, head of the Naftogaz Group, commented that the decision is a victory for Naftogaz in the energy sector. Despite Russia's attempts to obstruct justice, the Court of Arbitration has obliged Russia to compensate Naftogaz for damages worth USD 5 billion resulting from the seizure of assets in Crimea in 2014. Russia must now comply with the decision in accordance with its international legal obligations.

Chernyshov highlighted that the compensation is for assets aimed at developing gas fields and strategically vital infrastructure in the region, which became one of the main targets of the aggressor during the occupation of the Ukrainian peninsula nine years ago.

“I believe this is not the final decision in favor of Ukraine that will come out of The Hague,” he added.

For reference, arbitral awards can be enforced through an enforcement mechanism. Thus, if Russia refuses to comply voluntarily with the court's decision, Naftogaz has the right to initiate the process of recognition and enforcement of the decision in states where the Russian assets are located, according to the New York Convention of 1958.