The Hague Arbitration Court Rules Russia To Pay $5bln In Damages To Naftogaz

The head of Ukraine's largest national oil and gas company Naftogaz, Oleksiy Chernyshov, said on Thursday that the Permanent Court of Arbitration at The Hague ruled Russia to pay the country $5 billion in compensation for loss of assets in Crimea.

"The Naftogaz team has won a key victory on the energy front. Despite Russia's attempts to obstruct justice, the Arbitration Tribunal ordered Russia to compensate Naftogaz for losses of USD 5 billion. This relates to the seizure of our assets in Crimea by Russia in 2014.

Russia must now comply with this decision in accordance with its obligations under international law," Chernyshov said.

If Russia refuses to voluntarily abide by the court's decision, Naftogaz has the right to begin the process of recognizing the arbitration decision and allowing it to be enforced on the territory of those states where Russia's assets are located, the CEO added.

The court found that the amount of compensation should be equal to the fair market value of Naftogaz assets prior to their loss. Naftogaz demanded about twice as much  $10 billion