Ukraine Seeks $6.9 Billion Arbitration Against Gazprom for Energy Claims

In a significant move, Ukraine is pursuing nearly $6.9 billion in international arbitration claims against Russian energy company Gazprom. President Volodymyr Zelensky announced this on July 20, referencing insights from Serhii Koretskyi, the CEO of Ukraine's state-run energy enterprise. Zelensky emphasized the legitimacy of these arbitration decisions, stating, "These are absolutely fair decisions that demonstrate the responsibility of Russia and Gazprom and affirms the strength of international law." Following this announcement, Ukrainian ambassadors are slated to receive guidance on July 21 regarding the recovery of the adjudicated amounts. Earlier this June, Naftogaz, Ukraine's largest energy firm, achieved another significant legal success when an international arbitration in Switzerland mandated Gazprom to pay $1.37 billion in damages. This year, the Permanent Court of Arbitration in The Hague ruled that Russia was liable for unlawfully taking Naftogaz's assets following the 2014 occupation of Crimea. Additionally, a French court authorized the enforcement of a previous $5 billion arbitration decision against Russia for the damages incurred by Naftogaz during that period. According to international law, arbitration rulings are enforceable across various jurisdictions through local courts. If a state defaults on payment, creditors may pursue foreign assets to fulfill the judgment. The expropriation of vital infrastructure and natural gas reserves critically impacted Naftogaz, making its legal battle against Russia one of the most notable corporate arbitration cases since the conflict began in 2014.