The French court has provided a significant legal basis for the compensation claim against Russia in the case concerning damages caused to Ukraine’s Naftogaz due to the occupation of Crimea
This step marks an important milestone in the strategic efforts of the Ukrainian state-owned company to enforce the Hague arbitration decision, which obliges Russia to pay $5 billion in restitution. According to official information received from Naftogaz’s press service, the lawsuit was filed in the French court to implement the arbitration award issued in The Hague in 2023. The arbitration ruling mandates the Russian Federation to compensate the Ukrainian company $5 billion for the illegal expropriation of property and assets in Crimea, which an international court recognized as occupation and a violation of international law. Naftogaz’s senior management emphasizes that this current step is not only a legal victory but also an important signal to the Kremlin regarding the unavoidability of international obligations and the consistency of Ukraine’s legal strategy. The company’s head, Roman Chumak, noted that this decision paves the way for formalizing enforcement procedures within France, including the possibility of garnishing assets belonging to Russia located in this country. Currently, Naftogaz has already registered encumbrances on several Russian assets in France, totaling over €120 million. This represents the first tangible mechanism enabling the Ukrainian company to start enforcing the arbitration award, despite Moscow’s reluctance to voluntarily comply with its legal obligations. The enforcement process is being managed by the French law firm Le 16 Law, which specializes in international disputes and jurisdictional issues. The French proceedings are part of a broader campaign aimed at enforcing the Hague arbitration ruling across various countries where Russian assets may be frozen. The legal battle began to take shape as early as April 2023, when the Arbitration Tribunal at the Permanent Court of Arbitration in The Hague issued a decision awarding Naftogaz $5 billion as compensation for the unlawful annexation and expropriation of assets in Crimea. This ruling has enforceable force and can be realized through mechanisms of enforcement. This mechanism can also be applied in cases of partial or non-compliance by Russia. In such situations, Naftogaz has the right to seek recognition and enforcement of the arbitration decision in courts of other states, serving as an important legal instrument in the ongoing effort to recover assets and receive compensation. Another significant step was the court ruling in Finland in October 2024, which froze Russian assets within the country to secure Naftogaz’s compensation. This marked the first precedent in Europe, providing the Ukrainian side with additional legal tools to combat Russia’s non-payment and increasing the prospects for success in the long-term legal campaign against Moscow. Overall, this legal initiative demonstrates Ukraine’s resilience and determination to protect its interests, uphold international law, and pursue justice. It also underscores the importance of international legal cooperation and the consistent work of legal professionals in long-term disputes with Russia, which seeks to evade accountability for its actions and conduct. Adding to the comprehensive strategy for restoring justice, these steps show that Ukraine will not leave violations of international law unchallenged, and that the international community stands on the side of legality and truth.