In November 2018 Ukrenergo will finally select a law firm to sue Russia
The Ukrainian power transmission system operator, Ukrenergo NPC SE, in November 2018 will select a law firm to solicit in litigation with the Russian Federation to redress investment losses caused by expropriation of Ukrenergo’s Crimea-based assets because of annexation of the peninsula by Russia. This was reported by Mr. Vsevolod Kovalchuk, Head of Ukrenergo NPC SE.
«In November of this year we expect to accomplish the tender selection, and by the end of the year to conclude a contract with the winning law firm", said Mr. Kovalchuk.
As to the amount being claimed, Mr. Kovalchuk notes that its value will be determined by the law firm contracted.
As reported earlier, in 2014 Russian Federation breached international law by annexing the Crimea and seizing assets of many peninsula-based Ukrainian companies, thus violating property right of the later. Early April 2018, Ukrenergo notified Russia’s authorities about initiation of investment dispute within the framework of Russia-Ukraine bilateral agreement on investment protection. The pending dispute stems from seizure of Ukrenergo’s Crimea-based infrastructure facilities (overhead power transmission lines, power distribution substations, etc.).
According to the bilateral agreement on investment protection, if dispute is not settled by negotiation, further resolution can be sought by the claimant in courts of international arbitration. As of recent, Ukrenergo has posted on zakupki.prom.ua, the country-wided e-procurement platform, a tender announcement for legal services during litigation with Russia. The threshold price for the tendered legal services is UAH 45 mil excluding VAT. The legal services shall be rendered until April 30, 2021, the expected date of the final court award.