The British public company Enwell Energy plc (ENW), part of the Smart Energy group, has announced the initiation of arbitration proceedings against Ukraine over the suspension of hydrocarbon extraction licenses for three of its fields.
According to the company’s statement on the London Stock Exchange on August 27, ENW has started arbitration under the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ukraine on the Promotion and Reciprocal Protection of Investments, as well as under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. The arbitration has been registered with the International Centre for Settlement of Investment Disputes (ICSID).
“Within the arbitration proceedings, the Company is claiming monetary damages for the loss and damage it has suffered as a result of Ukraine’s actions, as well as the reinstatement of its licences for the remainder of their respective durations, and its costs,” the statement reads.
The company notes that the arbitration follows a series of adverse measures taken by Ukraine against it and its subsidiaries since December 2022, the most significant being the suspension of licenses for gas and condensate exploration and extraction.
Enwell Energy emphasizes that it attempted to resolve the dispute amicably, including through procedures outlined in the investment protection agreement, but these efforts were unsuccessful. The company asserts that Ukraine’s actions violated its obligations and the company’s rights under the agreement.
