The Permanent Court of Arbitration in The Hague issued a landmark ruling ordering Russia to pay a record $5 billion in damages to Naftogaz, the state-owned Ukrainian energy company. The ruling stems from the confiscation of Naftogaz’s assets on Ukraine’s Crimean peninsula, which has been occupied by Russia since 2014.

Despite the obstacles raised by Russia in the legal process, the Permanent Court of Arbitration ruled that the Russian Federation must compensate Naftogaz for the confiscation of its assets in Crimea in 2014, the company itself announced in a statement.

The compensation awarded by the court is the highest ever awarded by this international arbitration institution, which was established in 1899 by numerous governments to settle disputes and disagreements between states. More than 120 countries, including Russia, are part of this court, and the compensation was calculated based on the market value of the assets expropriated from Naftogaz at the time of Russia’s annexation of Crimea.

In case Russia does not comply with the court decision, Naftogaz has the option to initiate another procedure to request the embargo of Russian assets in countries that respect the court rulings. This ruling represents an important milestone in the resolution of the dispute between Ukraine and Russia, and highlights the importance of international arbitration as a mechanism to resolve conflicts between States.

K. Tovar

Source: Descifrado

(Reference image source: file)

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