Austrian court allows Naftogaz to recover over EUR120 mln in assets from Russia

Naftogaz Group has received permission from the Vienna District Court to enforce an arbitration award against the Russian Federation (the Crimean award) worth over $5 billion.

"In particular, the court allowed encumbrance of over 20 Russian real estate properties in Austria, which will be sold at auction. The total value of these assets exceeds EUR120 million," Naftogaz reported on Monday.

According to the company, similar actions are also underway in other jurisdictions.

"Another practical step on the way to recovering over $5 billion from the Russian Federation for the illegally seized assets of Naftogaz Group in Crimea. Similar actions are ongoing in other jurisdictions. The Russian Federation will pay for everything. Sooner or later. Definitely," said Serhiy Koretsky, chairman of the board of Naftogaz Ukrainy.

The interests of Naftogaz in Austria are represented by the law firm DORDA. The team is headed by partner Alexander Karl and chief lawyer Robert Keimelmayr, supported by Teresa Stingl.

As the company recalled, in October 2016, Naftogaz initiated arbitration proceedings against the Russian Federation, demanding compensation for Moscow's illegal seizure of the group's property - in violation of the bilateral investment protection agreement between Ukraine and Russia. Naftogaz was a leading participant in the natural gas market in Crimea, carrying out activities in the exploration, production, transportation, storage, processing and distribution of gas. The list of assets included special permits for the use of subsoil, equipment and infrastructure, rights to operate pipelines and gas storage facilities, ownership shares in gas pipelines and over 675 million cubic meters of gas in underground storage facilities.