Hague Court Demands Russia Pay $5 Billion in Compensation

The Hague Arbitration Tribunal has demanded that Russia pay $5 billion in compensation to Ukraine's Naftogaz state company due to the loss of assets in Crimea, according to Ukrainian sources. Russia has yet to comment on the information.

Enforcement orders can be applied forcibly, as Naftogaz has the right to commence the recognition and enforcement process in states where Russian Federation assets are located, the Ukrainian company stated.

The information was reported by kommersant.ru. Naftogaz began proceedings in the autumn of 2016. According to the Ukrainian side, the Russian Federation is required to pay compensation for breaches of investment protection agreements, including the expropriation of “strategically significant energy investments.”

A ruling in favor of Kyiv was made as early as 2019, while the second phase of arbitration proceedings related to the amount of compensation.

Earlier, the Ministry of Justice of the Russian Federation stated that Moscow does not recognize the decision of the Hague Court.