National joint-stock company Naftogaz Ukrainy on January 11 signed a contract for $6.31 million with Covington & Burling LLP (New York, the United States). The company will represent the interest of the Ukrainian company in arbitration against Russia under a claim to refund losses over the annexation of Crimea by Russia.

Naftogaz said in a report in the ProZorro e-procurement system, the contract expires on December 31, 2017.

Earlier Naftogaz Ukrainy Head Andriy Kobolev predicted that hearing of a lawsuit against Russia where Naftogaz demands to refund losses of around $2.6 billion caused by the unlawful seizure of the holding's assets due to the annexation of Crimea would last two or three years.

"I think that we have high chances to win," he said on Channel 5 TV.

Naftogaz earlier declared its plans to seek to regain control over its assets lost because of Russia's occupying Crimea and have all losses compensated for through international judicial institutions.

Naftogaz in February 2016 initiated a negotiating process regarding the loss of its assets in Crimea by formally notifying Russia of an investment dispute under the bilateral investment protection agreement.

The six-month negotiating period ended in August 2016. Thus, the negotiating process produced no results, which entitles Ukraine to start arbitration proceedings against Russia regarding the investment agreement.

Naftogaz contracted Covington & Burling LLP (New York, the United States) to protect its interests in the litigation concerning the lost Crimean assets.

Naftogaz Ukrainy is wholly owned by the Ukrainian Cabinet of Ministers and consolidates the country's largest oil and gas producing facilities. It holds a monopoly on the transportation and storage of natural gas in underground storage facilities and on the transportation of oil through pipelines across the country.