The Tribunal sitting in Paris appointed to hear the dispute before the Permanent Court of Arbitration issued an award on August 5, 2024, in favor of Ukraine's national energy company, Ukrenergo, affirming that the arbitral tribunal has jurisdiction to hear the company's dispute with Russia.

"This means that ultimately the arbitration tribunal will hear and rule on the claims filed by Ukrenergo against the Russian Federation in 2019," wrote Ukrenergo's head, Volodymyr Kudrytsky, on Facebook on Tuesday.

He reminded that the Ukrainian grid operator is suing the Russian state for unlawfully expropriated energy assets and investments in Crimea. The claim amounts to EUR 527 million.

"This involves at least 17 high-voltage substations of Ukrenergo in Crimea and over 1,300 km of power transmission lines that were seized by the enemy during the annexation of the Ukrainian peninsula," Kudrytsky said.

Ukrenergo is also seeking compensation for other violations of the 1998 Agreement between the Government of Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments.

As the company recalled, the Russians attempted to challenge the jurisdiction of the international tribunal in a similar case involving Oschadbank's claims against Russia for assets in annexed Crimea. The Ukrainian side managed to prove the validity of the jurisdiction, albeit only after an appeal.

"Therefore, the court's decision in our case is extremely important for the future protection of Ukrenergo's interests and for bringing the process to a final decision in favor of the company," Kudrytsky said.

Arbitration proceedings regarding Ukrenergo's claims have been ongoing since November 2020. "Unlike other similar legal processes involving Ukrainian companies against the Russian state, the Russians are actively defending this case. Representatives from the Prosecutor General's Office of the Russian Federation were present at the hearings in Paris in September 2023," Kudrytsky added.

According to him, it took the arbitrators 11 months to analyze the arguments of both parties and make their decision on jurisdiction. The Permanent Court of Arbitration will now set the procedural calendar for the next hearings, during which the merits of the case will be considered.

"We are preparing for the next stages of a long and exhausting dispute. But in the end, the aggressor will pay every penny for the damage caused to Ukraine's energy system," concluded the head of Ukrenergo.