The Permanent Court of Arbitration (PCA) in the Hague has ruled that the Russian Federation must compensate Ukrainian investors about $159 mln in losses caused by the annexation of Crimea.
“On 2 May 2018, having deliberated the Tribunal issued its unanimous Award on the Merits, addressing issues pertaining to liability and damages,” the press release reads.
According to the Court, as Russia violated the rights of Ukrainian companies, it has to compensate for losses from 21 March 2014, when Russian president Vladimir Putin signed a decree on annexation of Crimea:
“The Claimants contended that, as of August 2014, the Russian Federation breached its obligations under the Ukraine-Russia BIT by interfering with and ultimately expropriating their investments in real estate located in Crimea.”
The ruling is considered to be the victory of Ukrainian companies from which the Russian Federation seized assets in Crimea. It is for the first time ever when Russia might have to pay for the annexation.
18 investors and one individual (their names are not disclosed) may get compensation from the Russian Federation.
In July 2014, the court of arbitration ruled that Russia should pay $50 bn compensation to former shareholders of Yukos, but the Kremlin challenged the decision in the Hague District Court.
It is expected that the Kremlin will also appeal against the recent ruling of the Tribunal.