Russia ordered to pay PrivatBank over $327 million for assets in Crimea

The Permanent Court of Arbitration in The Hague has ordered Russia to pay PrivatBank over $327 million in compensation for the illegal expropriation of the bank's assets following the occupation of Crimea. The tribunal issued a final award in the case, which has been pending since 2015.

The awarded amount includes compensation for damages, interest accruing from April 18, 2014, as well as PrivatBank's costs related to the proceedings. Interest will continue to accrue until the awarded amount is paid in full.

The proceedings were conducted under the 1998 bilateral agreement between Ukraine and Russia on the promotion and mutual protection of investments. The case is registered with the Permanent Court of Arbitration under number 2015-21.

The tribunal previously confirmed its jurisdiction to hear PrivatBank's claims and that Russia violated Article 5 of the investment agreement. In the final award, the tribunal also dismissed the Russian side's objections regarding the allegedly illegal nature of the bank's investments.

Before April 2014, PrivatBank had significant operations in Crimea and owned assets on the peninsula, including a loan portfolio, real estate, and cash. After the occupation of the peninsula, Russian authorities took measures that, according to the arbitration award, led to the illegal expropriation of these assets and the cessation of the bank's operations in Crimea.

PrivatBank described the award as the conclusion of an 11-year legal battle and stated that it intends to pursue full payment of the awarded compensation, using the necessary legal mechanisms for this purpose.

Based on materials from: PrivatBank