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    Naftogaz Seeks $5.2bn Over Crimean Losses


A verdict is not anticipated until the end of 2020.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Corporate, Litigation, Exploration & Production, News By Country, Ukraine

Naftogaz Seeks $5.2bn Over Crimean Losses

Ukraine’s Naftogaz has filed claims against Russia worth $5.2bn at the Hague Permanent Court of Arbitration (PCA) over the 2014 seizure of its assets in Crimea, the company revealed on July 31. The tribunal is expected to reach a verdict no earlier than the end of 2020, Naftogaz said.

Naftogaz said it had held “the most valuable energy assets in Crimea and was one of Russia’s main targets” when Moscow began confiscating Ukrainian property after Crimea’s annexation.

Specifically, the company lost several recently purchased drilling rigs and equipment stationed in the region, as well as control of local infrastructure. Russia also laid claim to large gas deposits off Crimea held by Naftogaz, putting an end to Ukraine’s hopes of building up an offshore gas industry. Output at these fields totalled 1.65bn m3 of gas in 2013, and had been projected to reach 3bn mwithin two years.

Naftogaz scored a key victory in its efforts to get redress in March, when the Hague tribunal ruled that Russia would have to compensate the company. But the court is yet to decide on the size of this award. Naftogaz meanwhile continues to await payment from Gazprom for the transit contract arbitration, on which the interest is mounting.