DTEK initiates hearing of investment dispute with Russia over assets in Crimea, assesses losses at over $500 mln
Public joint-stock company DTEK Krymenergo has started the procedure for settling an investment dispute with Russia under an agreement on mutual protection of investment signed by the Ukrainian and Russian governments.
DTEK said that the dispute is linked to the nationalization of the company's assets on the territory of Crimea.
If the dispute is not settled during negotiations, DTEK Krymenergo seeks to file it to the international arbitration court. The sum of compensation of actual and potential loss of the company could be over $500 million.
"The cost of movable and immovable property of PJSC DTEK Krymenergo that was nationalized under a decision of the Council of the Republic of Crimea is over $500 million," DTEK said.
DTEK Krymenergo attracted Covington and Burling LLP to protect its interests.
"Since the moment of the unlawful seizure of DTEK Krymenergo we have been actively restoring documents, creating the evidence base and drafting the legal strategy. After finishing a comprehensive analysis of international practice and similar cases we have sent an official notification on the investment dispute to Russia under the agreement on mutual protection of investment signed by Ukraine and Russia," acting Director General of DTEK Energo Dmytro Sakharuk said.