Listen to this article Russia Ordered By The Hague Court To Pay $5 Billion To Compensate Naftogaz For Losses In Crimea
Russia Ordered to Pay $5 Billion in Compensation to Naftogaz for Losses in Crimea
The Hague court has ordered Russia to pay $5 billion in compensation to Naftogaz, the largest national oil and gas company in Ukraine, for the losses and property damage it suffered in Crimea since 2014.
On Facebook, Naftogaz CEO Oleksii Chernyshov stated that the compensation is for assets that aimed to develop gas fields and other crucial infrastructure, which the aggressor targeted during the occupation of the Ukrainian peninsula. He also expressed confidence that this won’t be the last decision in Ukraine’s favor by The Hague.
Confirmation by the Arbitration Tribunal
The arbitration tribunal confirmed that Russia must fully compensate Naftogaz for the losses caused by its illegal seizure of Naftogaz Group’s assets in Crimea.
Naftogaz Press Service Statement
Naftogaz’s press service statement declares that international law obligates Russia to comply with this decision.
Enforcement of the Arbitration Awards
An enforcement mechanism can enforce arbitration awards, and if Russia does not comply with the court’s decision voluntarily, Naftogaz can initiate the process of recognizing and enforcing the decision in the states where the Russian Federation’s assets are located, under the New York Convention of 1958.
In conclusion, The Hague court’s decision ordering Russia to pay $5 billion in compensation to Naftogaz for the losses and property damage it suffered in Crimea is a significant victory for Ukraine. The decision confirms that Russia must fully compensate Naftogaz for the losses caused by its illegal seizure of Naftogaz Group’s assets in Crimea. However, it remains to be seen whether Russia will comply with the court’s decision, and Naftogaz may need to initiate the process of enforcing the decision in other countries where Russian assets are located. Regardless, this decision by The Hague highlights the importance of adhering to international law in resolving disputes between nations.