Kyiv court allows JKX to proceed with execution of London arbitration decision to recover $12 mln of damages
The Kyiv Court of Appeals has granted the petition of the British company JKX Oil & Gas with assets in Ukraine to recognize and enforce the arbitration decision of the London Court of International Arbitration of February 6, 2017 to recover losses of over $12 million, the press service of the Ilyashev and Partners law firm, representing the interests of JKX, has said.
"The arbitration flawlessly figured out the situation and found violations by the state when charging royalty for oil and gas production, as well as controlling capital and transporting gas. By the decision of the Kyiv Court of Appeals, the arbitral award was recognized and allowed to be enforced," senior partner of the laws firm Roman Marchenko said.
As reported, in early 2015 the subsidiary Ukrainian and Dutch companies of JKX initiated arbitration proceedings against Ukraine in accordance with the Energy Charter Treaty and bilateral investment protection agreements signed by Ukraine with the United Kingdom and the Netherlands, demanding compensation for more than $180 million. The reason was the temporary increase by the Verkhovna Rada of gas production royalties from 28% to 55%, and then the extension of this norm to 2015.