The Tribunal ordered russia to pay over USD 327 million in compensation of damages for the unlawful expropriation of PrivatBank’s assets in Crimea, including accrued interest since 18 April 2014 (which will continue to accrue until full payment is made) and other relevant costs and disbursements incurred by the Bank.
The Permanent Court of Arbitration in The Hague issued the Final Award in PCA Case No. 2015-21 in favour of PrivatBank (the “Bank”) and against russia (the “Respondent”) in the arbitration proceedings initiated by the Bank in 2015 under the 1998 Ukraine-Russian Federation Bilateral Investment Treaty.
Solvita Deglava, Member of the Management Board (Chief Restructuring and Recovery Officer) of PrivatBank commented: “The Final Award is a clear and important victory in conclusion of 11 years legal fight of the Bank for justice and for the principle that unlawful expropriation must have consequences. The Tribunal has confirmed the Bank’s right to substantial compensation, interest and costs. We expect the Award to be honoured and paid in full, and we will take all appropriate steps to secure payment and protect the interests of the Bank and its stakeholders”.
The Final Award follows the Tribunal’s earlier findings that it had jurisdiction over PrivatBank’s claims and that the claims were admissible, as well as that the Respondent had breached the Treaty.
In the Final Award, the Tribunal rejected the Respondent’s Illegality Objection, ruling that it did not deprive the Tribunal of jurisdiction or render PrivatBank’s claims inadmissible, and awarded compensation and costs to the Bank.
As informed earlier, until April 2014, PrivatBank maintained substantial operations and valuable assets in the Crimean Peninsula, including corporate and retail loans, real estate and cash. Shortly after unlawfully occupying Crimea, the Respondent took several measures which resulted in the illegal expropriation of the Bank’s Crimean assets and the termination of its operations in the Crimea.
Further information about the arbitration proceedings can be found on the PCA’s website (https://pcacases.com/web/sendAttach/106638 ).
