Russia was ordered to pay PrivatBank more than $327 million for the illegal expropriation of assets in Crimea
Kyiv • UNN
An arbitration court in The Hague awarded PrivatBank more than $327 million in compensation for the expropriation of assets in Crimea. The amount includes interest and costs.
The Arbitration Court ordered Russia to pay more than USD 327 million in compensation for damages caused by the unlawful expropriation of PrivatBank's assets in Crimea. As reported by the bank, this amount includes interest accrued from April 18, 2014 (which will continue to accrue until full payment), as well as other relevant costs and expenses incurred by PrivatBank, reports UNN.
Details
The Permanent Court of Arbitration in The Hague issued its Final Arbitral Award in Case No. 2015-21 in favor of PrivatBank (hereinafter, the Bank) against Russia (hereinafter, the Respondent) in the arbitration proceedings initiated by the bank in 2015 pursuant to the 1998 bilateral agreement on the promotion and reciprocal protection of investments.
The Final Arbitral Award is an obvious and important victory that culminated in PrivatBank's 11-year legal struggle to achieve justice and uphold the principle that unlawful expropriation must have consequences. The Arbitration Court confirmed the bank's right to substantial compensation, interest, and reimbursement of costs. We expect the arbitral award to be enforced and paid in full, and we will take all necessary measures to ensure payment and protect the interests of the bank and its stakeholders
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The decision is based on the Arbitration Court's preliminary findings that it has jurisdiction to consider PrivatBank's claims and that those claims are admissible, as well as that the Respondent breached Article 5 of the Agreement. In the final decision, the Arbitration Court rejected the Respondent's objections regarding the illegality of the investments and ruled that this did not deprive the court of jurisdiction or render the claims inadmissible, and awarded the Bank compensation and reimbursement of costs.
In addition
As previously reported, until April 2014, PrivatBank conducted substantial operations and held valuable assets on the Crimean Peninsula, including loans, real estate, and funds. Shortly after the unlawful occupation of Crimea, the Respondent took a number of measures that led to the unlawful expropriation of the bank's assets and the termination of its operations in Crimea.