Naftogaz of Ukraine, together with five companies of Naftogaz Group, has filed a motion to the United States District Court for the District of Columbia to confirm the earlier award by the Arbitral Tribunal of the Permanent Court of Arbitration at The Hague that bound Russia to pay $5 billion (including interest) in compensation for damage and lost property in Crimea.

According to the company's press release, published on Friday, the motion is necessary for the enforcement of the award. In accordance with the 1958 New York Convention, Naftogaz has the right to initiate the process of recognition of and admission to award enforcement in countries hosting Russian assets.

"Since Russia has not voluntarily paid the funds to Naftogaz as provided for by the award, we intend to leverage all available mechanisms to recover these funds. We are currently working on this in the United States and other target jurisdictions," Naftogaz Group CEO Oleksiy Chernyshov said.

In accordance with U.S. laws, confirmation of the award is mandatory unless the court establishes the existence of causes to refuse or delay recognition or enforcement of the award set out in the New York Convention. Interest for non-payment of funds in accordance with the award continues to accrue until the full payment of compensation under the award.

As reported, on 12 April 2023, the Arbitral Tribunal of the Permanent Court of Arbitration at The Hague ordered Russia to pay $5 billion in compensation for losses caused by the seizure of Naftogaz Group's assets in the Autonomous Republic of Crimea in 2014.

Back in October 2016, Naftogaz and its subsidiaries initiated arbitration proceedings against the Russian Federation for damages due to the seizure of their assets in Crimea, and in September 2017 an application was submitted to the tribunal at the court in The Hague.

In February 2019, the tribunal confirmed the responsibility of the Russian Federation for violating the intergovernmental agreement on the protection of investments, including the article on the prohibition of expropriation.

In June of the same year, Naftogaz filed an application with the tribunal for the amount of compensation for losses from the expropriation of assets in Crimea, and in December the Russian Federation filed a counter-application.

In February 2020, Naftogaz, in a response statement, additionally substantiated the amount of compensation for losses, estimating them at about $5 billion plus interest, which at the beginning of 2022 already exceeded $10 billion.

On February 21, 2022, the Arbitration Tribunal in The Hague began hearings to determine the amount of compensation to Naftogaz Ukrainy for the missed opportunity to use its assets in Crimea.

In April 2023, the leading American law firm Covington & Burling LLP presented Naftogaz with a strategy to recover $5 billion in compensation from Russia for seizing the group's assets in Crimea.