The Hague’s Arbitration Tribunal orders Russia to pay $5 billion to Ukrainian state gas company for loss of Crimean assets

The Hague’s Arbitration Tribunal at the Permanent Court of Arbitration has ordered Moscow to pay $5 billion to the Ukrainian state-owned oil and gas company Naftogaz in compensation for damage caused by Russia’s annexation of Crimea, the company’s head, Oleksiy Chernyshov, said on Thursday.

“I believe this won’t be the last decision made in The Hague in our country’s favor. The truth is on our side,” the CEO wrote on Facebook.

The company’s press service said in a statement that if the Russian authorities refuse to comply with the court’s decision voluntarily, then in accordance with the 1958 New York Convention, Naftogaz has the right to begin the process of forcibly implementing the decision on the territory of countries containing Russian assets.

Commenting on the ruling, Putin spokesman Dmitry Peskov said Russian “experts” will have to “analyze” the order before “making a decision on further actions.” 

Naftogaz initiated arbitration proceedings against Russia over the expropriation of the company’s assets in Crimea in October 2016, two years after Russia annexed the peninsula.