06.05.2025, 09:20
A court in London has suspended the collection of funds in Russia in favor of Ukraine.
Source: OREANDA-NEWS
OREANDA-NEWS The High Court of London suspended the execution in the UK of the Hague Arbitration decision on the claim of the Ukrainian JSC DTEK Krymenergo, in which it was supposed to recover $ 207.8 million from Russia. Kommersant writes about this with reference to the decision.
The postponement is given for the duration of the appeal, which, according to Russia's complaint demanding to annul the earlier decision, is being considered by the Hague Court of Appeal. The trial may take up to four years.
DTEK's assets were nationalized in 2015, after Crimea and Sevastopol were incorporated into the Russian Federation. The company considered such actions to be illegal expropriation and appealed to international arbitration in The Hague.
The plaintiff referred to the Agreement on Mutual Protection of Investments between Russia and Ukraine, and the defendant argued that the provisions of the document were not applicable to Crimea. In November 2023, the arbitration recognized the correctness of the Ukrainian side, and two weeks later, DTEK appealed to a number of countries to enforce the judgment.
Russia, in turn, filed an appeal to The Hague, and then to the High Court of London, asking the latter to either cancel the execution order or suspend its execution until the final decision of the international arbitration. DTEK requested either to cancel the application or to oblige Russia to contribute the required amount as a financial guarantee.
The London court made a compromise decision. On the one hand, he suspended payments and did not request guarantees from Russia, and on the other, refused to overturn the verdict of the previous instance and ruled that if the Russian side loses the current appeal, the funds will be recovered. The point is that after a new defeat, Moscow can appeal the verdict again, but these actions will no longer be taken into account in the UK.
The postponement is given for the duration of the appeal, which, according to Russia's complaint demanding to annul the earlier decision, is being considered by the Hague Court of Appeal. The trial may take up to four years.
DTEK's assets were nationalized in 2015, after Crimea and Sevastopol were incorporated into the Russian Federation. The company considered such actions to be illegal expropriation and appealed to international arbitration in The Hague.
The plaintiff referred to the Agreement on Mutual Protection of Investments between Russia and Ukraine, and the defendant argued that the provisions of the document were not applicable to Crimea. In November 2023, the arbitration recognized the correctness of the Ukrainian side, and two weeks later, DTEK appealed to a number of countries to enforce the judgment.
Russia, in turn, filed an appeal to The Hague, and then to the High Court of London, asking the latter to either cancel the execution order or suspend its execution until the final decision of the international arbitration. DTEK requested either to cancel the application or to oblige Russia to contribute the required amount as a financial guarantee.
The London court made a compromise decision. On the one hand, he suspended payments and did not request guarantees from Russia, and on the other, refused to overturn the verdict of the previous instance and ruled that if the Russian side loses the current appeal, the funds will be recovered. The point is that after a new defeat, Moscow can appeal the verdict again, but these actions will no longer be taken into account in the UK.
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