Last checked at 30 Nov 2016 12:34
30 November 2016
The Paris Court of Appeals confirms two arbitral awards ordering Ukraine to pay $112 million, plus interest, to Tatneft
Tatneft commenced arbitration proceedings against Ukraine in 2008 on the basis of the Russian-Ukrainian Bilateral Investment Treaty.
In 2010, the arbitral tribunal unanimously found that it had jurisdiction over the dispute.
In 2014, the arbitral tribunal found in favor of Tatneft, and ordered the Republic of Ukraine to pay to Tatneft damages in the amount of $112 million, plus interest.
Later that year, Ukraine commenced proceedings before the Paris Court of Appeals in an attempt to set aside these two awards, arguing that (i) the arbitral tribunal did not have jurisdiction over the dispute and (ii) one of the arbitrator lacked independence and impartiality.
On November 29, 2016, the Paris Court of Appeals rejected both arguments and confirmed the validity and enforceability of both awards.
Tatneft is very pleased with this result.
Although the final award was already enforceable before the decision of the Court of Appeals of Paris, Tatneft did not act on it because it was hoping that Ukraine would voluntarily pay the damages owed to Tatneft. Now that the Paris Court has confirmed that the awards were valid and enforceable, Tatneft hopes that the decision will voluntarily be performed. If this is not the case, Tatneft will take all the available legal steps to recover the funds due by Ukraine.
Forward-looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.