A Paris court has recognized and granted enforcement (exequatur) of the Hague Tribunal’s ruling awarding Naftogaz $5 billion in damages for the unlawful expropriation of its assets in Crimea. This was announced by Naftogaz’s press service.
“This outcome is part of our global campaign to enforce the arbitration award. It marks a crucial legal victory for Naftogaz of Ukraine and five other companies of the Group. It enables Naftogaz to begin enforcement proceedings in France,” explained Naftogaz Group CEO Roman Chumak.
Russian Assets in France Worth €120 Million
As part of this process, Naftogaz has already registered encumbrances on several Russian state-owned assets in France, with a total value exceeding €120 million. This marks the first step in the forced execution of the arbitral ruling.
Legal Representation
The French legal proceedings are being handled by Paris-based dispute resolution law firm Le 16 Law. The team is led by partners Julie Spinelli and Alexandra Szekely, with support from junior lawyers Pauline Gadd, Carla Shimura, and Emma Rouby. The recognition and enforcement process was conducted entirely on a pro bono basis by Le 16 Law.
“Our team is utilizing all available legal mechanisms to ensure enforcement of the arbitration ruling and to hold Russia accountable for its unlawful actions. One of the first strategic decisions we made after I took over leadership of Naftogaz in December 2024 was to strengthen our enforcement strategy in this case. We are grateful to the team at Le 16 Law, as well as our long-standing partner and lead legal advisor in the case — Covington & Burling, especially David Pinsky, Clovis Trevino, and Peres Aboro, for their support and assistance,” Chumak emphasized.
Naftogaz noted that it continues to do everything possible to bring the arbitral award closer to full enforcement.
“We have already achieved certain successes in other jurisdictions, including the UK and Finland. We remain determined to recover the full compensation amount and to protect the rights of Ukrainian state-owned enterprises on the international stage,” Chumak added.
Background
In October 2016, Naftogaz and six other Group companies initiated arbitration proceedings against the Russian Federation under the Arbitration Tribunal of the Permanent Court of Arbitration, based on the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the promotion and mutual protection of investments. Naftogaz requested that the tribunal order Russia to compensate for violations of the Agreement, including the illegal expropriation of its strategically important energy investments.
In February 2019, the tribunal confirmed its jurisdiction over the case and determined that Russia had violated its obligations. In July 2022, the Hague Court of Appeal upheld the tribunal’s jurisdiction in this matter.
On April 12, 2023, the tribunal ordered Russia to pay $5 billion in damages for the seizure of Naftogaz Group assets in Crimea in 2014. Recently, the Supreme Court of the Netherlands rejected the Russian Federation’s cassation appeal seeking to overturn the tribunal’s partial award on jurisdiction and the merits of the case.
