Aequo supports Naftogaz in prevailing on jurisdiction and liability in an investment arbitration against Russia

Aequo, in conjunction with Covington & Burling, acted for Naftogaz, the largest Ukrainian oil and gas company, and its subsidiaries in international arbitration against the Russian Federation in a dispute over a breach of the Ukraine-Russia bilateral investment treaty (BIT) by expropriating the Naftogaz group’s assets in Crimea.

In its partial award the arbitral tribunal confirmed its jurisdiction to hear the Naftogaz group’s claims against the Russian Federation and concluded that Russia had unlawfully expropriated assets owned by Naftogaz group in Crimea and breached its obligations under the Ukraine-Russia BIT to protect investments in Crimea.

The amount of damages will be ruled upon at the next stage of the arbitration. Naftogaz experts estimate the value of Naftogaz group’s assets as expropriated by Russia in Crimea at around USD 5 billion plus interest.