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Russia does not recognize court’s decision obliging it to pay $44.4 mln to Ukrnafta

Earlier, Ukrnafta announced that on April 12 Russia was due "to pay Ukrnafta $44.4 mln in compensation for expropriation of property of PJSC Ukrnafta in ... Crimea annexed by the Russian Federation"

MOSCOW, April 16. /TASS/. Russia does not recognize the legality of the decision of international arbitration, which obliged it to pay a $44.4 mln in compensation to Ukrainian company Ukrnafta for the property it had lost in Crimea, a spokesperson with the Russian Justice Ministry told TASS.

"The Russian Federation did not participate in the proceedings on that claim. It does not recognize the legality of the decision, primarily due to the fact that the arbitration lacks jurisdiction for considering this claim," the spokesperson said in response to a request from TASS.

The Justice Ministry noted that "the Russian Federation plans to challenge that decision and to use all available legal protection mechanisms provided for by international law and Swiss law for this purpose."

According to the ministry, the Russian side did not receive, through official diplomatic channels, the decision on the claim of Ukrnafta, made on April 12 by the international arbitration under the Permanent Court of Arbitration in The Hague.

Earlier, Ukrnafta announced on its website that on April12, the Russian Federation was "ordered to pay Ukrnafta $44.4 mln in compensation for expropriation of property of PJSC Ukrnafta in the Autonomous Republic of Crimea annexed by the Russian Federation." The company specified that the claim concerned administrative offices and 16 petrol stations of PJSC Ukrnafta.

Crimea’s reunification with Russia

After the coup in Ukraine in February 2014, the authorities of the Crimea and Sevastopol held a referendum on reunification with Russia. At the referendum held in March 2014, 96.77% of Crimeans and 95.6% of Sevastopol voters chose to secede from Ukraine and join Russia. The Russian president signed the reunification deals on March 18, 2014. Despite the convincing results of the referendum, Kiev refused to recognize Crimea as part of Russia.

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