Energoatom institutes legal proceedings against Russia on damages for lost in Crimea assets
In May 2021, SE NNEGC «Energoatom» sent a dispute notice to the competent authorities of the Russian Federation under Part 1 of Article 9 of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation № 1302 of 1999 on promotion and mutual protection of investments.
It is referred to assets lost by the Company in Crimea, in particular the Donuzlavska Wind Power Plant, which is currently located in the temporarily occupied territory.
As far back as December 17, 2020, at the initiative of Herman Halushchenko, former Vice President of the Company and the present Minister of Energy of Ukraine, an agreement was concluded between SE NNEGC «Energoatom» and the well-known multinational law firm Shearman & Sterling LLP to provide services for preparing and sending a dispute notice on behalf of the Company to the Russian Federation. Formerly this law firm has already been involved in similar cases against the Russian Federation and has unique experience in resolving complex investment arbitration disputes.
«Energoatom will definitely resolve this dispute either extrajudicially or judicially», Acting President of NNEGC «Energoatom» Petro Kotin believes. «The national energy generating company must be compensated for assets that have not worked for the economy and energy development of the Ukrainian state for the eighth year in a row."
According to the procedure, upon receiving the notification by the Russian side, the parties will have six months for dispute settlement out of court. If the parties do not reach an agreement, this dispute may be referred to the court (arbitration).