On 6 December 2024, the Supreme Court of the Netherlands upheld the awards in which the Tribunal in the bilateral investment arbitration of PrivatBank against russia, ruled that russia unlawfully expropriated the Bank’s assets in Crimea. The Supreme Court rejected with finality and in their entirety russia’s challenges against the Interim Award of 24 February 2017 and the Partial Award of 4 February 2019. The Supreme Court’s judgment paves the way for the ultimate determination by the Tribunal of the amount of PrivatBank's losses and damages caused by russia.
Solvita Deglava, a Member of the Management Board - Chief Restructuring and Recovery Officer at PrivatBank commented: “This important judgment by the Supreme Court of The Netherlands serves as a resounding confirmation of the earlier victories we obtained in this fight for the rule of law. Especially in light of the ongoing war against Ukraine, the aggressor must be reminded that it will face the consequences of its actions up before the highest judicial institutions in Europe and the world. I am proud of the Bank’s vigorous assertion of its legal rights, which will continue until we obtain just and appropriate compensation from the aggressor.”
As informed earlier, until April 2014 PrivatBank maintained substantial operations and valuable assets in the Crimean Peninsula, including loans, real estate and cash. Shortly after unlawfully occupying Crimea, russia took several measures which resulted in the illegal expropriation of the Bank’s assets and the termination of its operations in Crimea.
As a result, in 2015 PrivatBank initiated arbitration proceedings against russia under the 1998 Bilateral Investment Treaty. In those proceedings, from which russia initially chose to abstain, the tribunal issued an interim award and partial award, holding that the tribunal had jurisdiction over the dispute, and that russia unlawfully expropriated PrivatBank’s assets in Crimea. In 2019 russia launched a case before the Court of Appeal in The Hague, requesting the revocation or setting-aside of the Tribunal’s awards. The Court of Appeal rejected the challenges in its entirety in 2022, however, russia launched an appeal before the Supreme Court. That appeal has now been rejected with finality.
PrivatBank was represented before the Supreme Court of the Netherlands by De Brauw Blackstone Westbroek N.V., with assistance from Quinn Emanuel Urquhart & Sullivan UK LLP as lead counsel in the arbitration case, and Asters as Ukrainian counsel.
