The Supreme Court of Sweden upheld the decision in favor of Ukraine in the case brought by Ukrnafta shareholders

The Supreme Court of Sweden has finally upheld the decision of the Stockholm Arbitration in favor of Ukraine in the case of the lawsuit filed by Ukrnafta shareholders against the state of Ukraine. This is reported by UNN with reference to the Ministry of Justice of Ukraine.

Details

"On November 21, 2025, the Supreme Court of Sweden refused to open appellate proceedings on the complaint of Cypriot companies Littop Enterprises Limited, Bordo Management Limited, and Bridgemont Ventures Limited (LBB) regarding the annulment of the decision of the Svea Court of Appeal (Stockholm), which denied the annulment of the arbitration award in the "Ukrnafta" case dated February 4, 2021. Thus, the court decisions in this case have become final," the statement reads.

It is noted that LBB companies, which as of the date of the appeal owned 40.1009% of the shares of PJSC "Ukrnafta", initiated arbitration proceedings against the state of Ukraine in 2015, demanding compensation in the amount of more than 6 billion US dollars with interest.

"As a result of the case review, the arbitration tribunal agreed with the position of the state of Ukraine regarding the absence of its jurisdiction to consider this case. In particular, the arbitration tribunal concluded that LBB companies did not make an actual contribution to the authorized capital of PJSC "Ukrnafta", and therefore did not make an investment within the meaning of the Energy Charter Treaty and had no right to appeal to international arbitration. This conclusion was confirmed by the Svea Court of Appeal (Stockholm). Disagreeing with this decision, LBB companies appealed to the Supreme Court of Sweden with an appeal. However, the Supreme Court of Sweden found no grounds for reviewing the case and refused to open appellate proceedings," the ministry added.

As a result of the judicial and arbitration proceedings, LBB companies are obliged to reimburse the state of Ukraine for the costs of arbitration and judicial proceedings totaling over 22 million US dollars, as well as interest in accordance with Article 6 of the Swedish Interest Act, including:

• arbitration costs – 18,927,177.62 US dollars including accrued interest in accordance with Article 6 of the Swedish Interest Act from February 4, 2021, until the main debt is paid;

• court costs in the case of jurisdictional proceedings – 2,669,131.00 US dollars including accrued interest in accordance with Article 6 of the Swedish Interest Act from January 31, 2025, until the main debt is paid;
• court costs in the case of proceedings on court costs – 549,674.00 US dollars and 2,800.00 Swedish kronor including accrued interest in accordance with Article 6 of the Swedish Interest Act from January 31, 2025, until the main debt is paid.

Recall

The Stockholm Court of Appeal rejected the lawsuit of Cypriot companies regarding the annulment of the arbitration award in the "Ukrnafta" case. Shareholders must reimburse Ukraine more than 22 million dollars in court costs with interest.