The Permanent Court of Arbitration in The Hague ordered Russia to pay the Ukrainian gas company Naftogaz $ 5 billion in compensation for the lost property in Crimea. This is the largest amount awarded by an International Arbitration Tribunal as compensation for Russia's expropriation of assets in Crimea. If the Russian Federation refuses to pay, the decision can be enforced, said the press service of Naftogaz.
"These are the consequences of Russia's seizure of our assets in Crimea in 2014. Russia must now comply with this decision in accordance with its obligations under international law," said the CEO of Naftogaz Oleksiy Chernyshev.
The court also ruled that Russia should reimburse Naftogaz for the costs associated with the arbitration proceedings.
The Kremlin has not yet decided whether to comply with the decision of the Arbitration Tribunal in The Hague. According to Putin's press secretary Dmitry Peskov, Russian lawyers will first analyze the decision of the international court.
"Indeed, this litigation took place, it is not new. At the same time, the decision is new and needs to be analyzed. And our specialists, who are engaged in the protection of our rights in this case, will now analyze and make decisions on further actions," Peskov said.
The ruling of the court can be enforced through an international enforcement mechanism. Consequently, if Russia refuses to voluntarily comply with the court decision, Naftogaz, in accordance with the New York Convention of 1958, has the right to begin the process of enforcement of the decision in the territory of those countries where the assets of the Russian Federation are located.
Naftogaz is Ukraine's state-owned company which is engaged in production, transportation and processing of oil and natural gas.