Arbitration in The Hague ordered Russia to pay PrivatBank over 327 million dollars for assets in Crimea
The Permanent Court of Arbitration in The Hague has issued a final decision in the case of PrivatBank against Russia regarding the expropriation of assets in Crimea. Russia is required to pay over 327 million dollars in compensation, interest, and expenses; interest accrues from April 18 2014 to the full payment. The bank calls this the result of a 11-year-long struggle and states that it will pursue the recovery of funds.
The Permanent Court of Arbitration in The Hague has issued a final arbitration decision in case No. 2015-21, which PrivatBank initiated in 2015 based on a bilateral agreement between Ukraine and Russia on the promotion and mutual protection of investments from 1998.
The court ordered Russia to pay over 327 million dollars in compensation, interest, and expenses. This amount includes interest accrued from April 18 2014 onwards, which will continue to accrue until the full amount is paid.
The arbitration confirmed its jurisdiction to hear PrivatBank's claims and determined that Russia violated Article 5 of the agreement. The court rejected the Russian side's argument that the bank's investments were illegal, stating that this did not deprive it of jurisdiction or make the claims inadmissible.
According to the bank, by April 2014, it had significant operational activity in Crimea and owned assets there, including loans, real estate, and funds. After the annexation of the peninsula, the actions of the Russian side led to the expropriation of these assets and the closure of the bank's operations in Crimea.
The bank called the decision an important victory after 11 years of legal battle. PrivatBank stated that it expects full compliance with the decision and plans to take the necessary steps to recover the awarded compensation.