An arbitration tribunal in The Hague has ordered Russia to pay more than $327 million in compensation for losses caused by the unlawful expropriation of PrivatBank’s assets in Crimea.
PrivatBank announced the ruling in a statement.
The amount includes interest accrued since April 18, 2014, which will continue to accrue until full payment, as well as other relevant costs and expenses incurred by the bank.
The tribunal’s decision is final. It builds on its previous findings that it had jurisdiction to hear PrivatBank’s claims, that the claims were admissible, and that Russia had breached the 1998 Agreement on the Promotion and Reciprocal Protection of Investments.
“The final arbitral award is a clear and significant victory, marking the culmination of PrivatBank’s 11-year legal battle for justice and for the principle that unlawful expropriation must have consequences. The tribunal confirmed the bank’s right to substantial compensation, interest and reimbursement of costs. We expect the arbitral award to be enforced and paid in full, and we will take all necessary measures to secure payment and protect the interests of the bank and its stakeholders,” said Solvita Deglava, Member of PrivatBank’s Management Board responsible for reorganisation and distressed assets.
In its final ruling, the tribunal rejected Russia’s objections concerning the alleged illegality of the investments, finding that they neither deprived the tribunal of jurisdiction nor rendered PrivatBank’s claims inadmissible. It awarded the bank compensation and reimbursement of its costs.
Before April 2014, PrivatBank operated in Crimea and held valuable assets there. Shortly after the occupation of Crimea, Russia introduced a series of measures that resulted in the unlawful expropriation of the bank’s assets and the termination of its operations on the peninsula.
As of 2019, PrivatBank estimated its losses resulting from the annexation of Crimea at $9 billion.
