Arbitration against Ukraine

17 Mar 2008 15:52

O.A.O. Tatneft17 March 2008 Tatneft Press Contact:Savelova Maria+ 7 (495) 730-0082 m.savelova@tatneft-usp.ru TATNEFT Files Arbitration Against Ukraine Almetyevsk, March 17, 2008-JSC Tatneft ("Tatneft") announced today that it iscommencing an international arbitration against Ukraine in connection with theillegal forced takeover in October 2007 of the Kremenchug refinery (JSCUkrtatnafta), which is majority owned by Tatneft and shareholders aligned withit. On December 11, 2007, Tatneft sent to the President, the Prime Minister and theMinister of Foreign Affairs of Ukraine a notice of dispute proposingnegotiations pursuant to Article 9(1) of the bilateral investment treaty betweenthe Russian Federation and Ukraine to respond to Tatneft's claims arising out ofthe forcible takeover of the Kremenchug refinery. Although a number of seniorUkrainian officials are reported to have referred to this takeover as an "illegal raider action," Ukraine has failed to take any steps to restore theduly appointed Kremenchug management and protect the investment of Tatneft andof the other shareholders of JSC Ukrtatnafta aligned with it. Since Tatneft filed its notice of dispute, Ukraine has taken no action toaddress these claims or engage in negotiations with Tatneft. Under thebilateral investment treaty between the Russian Federation and Ukraine, Tatnefthas the right to commence an international arbitration against Ukraine at anytime after March 11, 2008. Tatneft will file shortly a request for arbitration,which will name a recognized public international law specialist as itsarbitrator. International law firm Cleary Gottlieb will represent Tatneft inthis arbitration. Forward-looking statements: These materials contain statements about futureevents and expectations that are forward-looking in nature. Any statement inthese materials that is not a statement of historical fact is a forward-lookingstatement that involves known and unknown risks, uncertainties and other factorswhich may cause actual results, performance or achievements expressed or impliedby such forward-looking statements to differ. JSC Tatneft assumes no obligationsto update the forward-looking statements contained herein to reflect actualresults, changes in assumptions or changes in factors affecting thesestatements. This information is provided by RNS The company news service from the London Stock Exchange