Ukraine’s state gas company Naftogaz said today that Russia has received an order arbitration court in The Hague to pay five billion dollars in compensation for the illegal exploitation of its assets in Crimea, which was annexed by Russia in 2014.

Naftogaz CEO Oleksiy Chernysov called the decision taken yesterday, Wednesday, by the Hague Arbitration Court at the Permanent Court of Arbitration, “an important victory on the energy front” and said that he expects other decisions favorable for Ukraine.

“Despite Russia’s attempts to obstruct justice, the Arbitration Court ordered Russia to reimburse Naftogaz for $5 billion in damages,” Naftogaz said in a statement.

Russia must comply

“Now Russia must comply with this decision in accordance with its obligations under international law,” the statement said.

Russia, which launched a full-scale invasion of Ukraine in February 2022, seized the Crimean peninsula from Ukraine in 2014, prompting a wave of sanctions from Western governments.

So far, there are no comments on the decision of the Russian Gazprom.

Naftogaz began proceedings in the arbitration court along with six other companies of the Naftogaz group in October 2016, the report said.

According to Naftogaz, the decision on the compensation awarded by the arbitration court was made after hearings to determine the amount, which ended in March 2022.

Tim Ash, analyst at BlueBay Asset Management, said the decision is “a big legal win for Ukraine, and I think there’s more to come.”

Naftogaz is negotiating with investors on debt restructuring.

Source: APE-MPE, Reuters.