Information that Ukraine is allegedly actively engaged in international court proceedings initiated by PrivatBank against the Russian Federation regarding the compensation of damage from the loss of the banking business and assets due to illegal Crimea annexation is false, the Finance Ministry of Ukraine has reported.
“The Ukrainian State does not participate in the claims of PJSC PrivatBank and Financial company Finilon LLC against the Russian Federation,” the ministry said.
The ministry said that the claims were initiated by the companies in line with the UNCITRAL Arbitration Rules regarding a violation of their rights under the agreement between the government of the Russian Federation and the Cabinet of Ministers of Ukraine on the encouragement and mutual protection of investments dated November 27, 1998 in respect of their investment in a banking network in the Crimean Peninsula.
The Permanent Court of Arbitration in the Hague in late February said that Russia must bear responsibility for protecting Ukrainian investors in Crimea after its annexation under the Russian-Ukrainian bilateral investment treaty.
The first arbitration proceedings into the lawsuit by the former co-owner of PrivatBank Ihor Kolomoisky and Belbek Airport LLC against the Russian Federation were launched on January 13, 2015. The claimants said that the Russian Federation had violated its obligations arising from the said treaty by adopting since February 2014 measures that deprived the claimant of property rights, contractual and other rights to operate the passenger terminal for commercial flights at the Belbek airport in Crimea.
Kolomoisky said he had a contract until 2020 to manage the passenger terminal of Belbek airport (Sevastopol) nationalized by Russia after the annexation of Crimea. He demanded compensation from the Russian Federation for losses in the form of a possible income from the terminal, amounting to $15 million.
Then, on April 13, 2015, similar arbitration proceedings against the Russian Federation were initiated by PrivatBank and Finance Company Finilon LLC, as the annexation of Crimea by Russia did not allow the claimants to continue their banking business in Crimea. (Interfax-Ukraine/Business World Magazine)