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The $5 billion lawsuit against Russia’s Gazprom. filed Wednesday. complains that the natural gas company has taken control of its assets in Crimea.
A statement of claim was filed yesterday with the Permanent Court of Arbitration in the Hague. This is the third lawsuit between the two firms. and the seventh such lawsuit against Russian owned companies operating in Crimea. A decision is not expected until late 2018. Naftogaz said in its statement.
Naftogaz says that three of its subsidiaries suffered billions in damages from Russia’s March 2014 annexation of Crimea. a southeastern peninsula jutting out into the Black Sea.
This suit should come as no surprise to Gazprom.
Last October. Naftogaz initiated the arbitration proceedings saying that their Crimean assets are protected under a Russia-Ukraine bilateral investment treaty.
Ukraine and Russia are currently going through a bitter divorce. And much of it stems from the deteriorating relations between these two energy companies. In 2013. Ukraine’s president Viktor Yanukovych backed out of a European trade deal in favor of receiving below market rates for Gazprom gas. Millions took to the streets to protest what most people in Kiev viewed as their president acting in Russia’s interests and not Ukraine’s. Yanukovych was forced out of office and a pro-Western government took over.
The battle between Naftogaz and Gazprom serves as a reminder. to some. that the Russians cannot be trusted.
