A court in The Hague has ordered Russia to pay $5 billion in compensation for seizing assets from Ukraine’s state energy firm following Moscow’s 2014 illegal annexation of Crimea.
In a statement issued Thursday, Kyiv’s Naftogaz group announced that the Permanent Court of Arbitration had ruled in the company’s favor in the case the day before.
“Despite Russia’s efforts to obstruct justice, the Arbitration Tribunal obliged the Russian Federation to compensate Naftogaz for losses in the amount of $5 billion,” the statement reads, confirming the compensation relates to “the consequences of Russia’s confiscation of our assets in Crimea in 2014.”
Moscow had previously threatened to levy sanctions against Naftogaz if the Ukrainian firm pursued the case in court, and has not yet responded to the decision. However, given Russia has previously refused to comply with other international court decisions affecting Naftogaz, securing restitution may prove challenging. Moscow could still also appeal the ruling.
According to Kyiv, after Russian forces moved into Crimea nine years ago, Kremlin officials nationalized energy infrastructure, including pipelines and offshore rigs.
