PrivatBank won arbitration against Russia for over $327 million for assets in occupied Crimea

PrivatBank has received a final arbitration award in a multi-year case against the Russian Federation regarding the illegal expropriation of the bank’s assets in temporarily occupied Crimea. The Russian Federation was ordered to pay the bank over $327 million.

This is the final decision of the Permanent Court of Arbitration in The Hague in case No. 2015-21, PrivatBank reported.

Russia was ordered to pay over $327 million

The amount awarded to the bank exceeds $327 million and includes compensation for losses, interest and related costs incurred by PrivatBank.

Interest is accrued starting from April 18, 2014 and, according to the decision, will continue to accrue until the funds are fully paid.

The dispute concerns PrivatBank’s assets in Crimea, which were illegally expropriated after Russia occupied the peninsula.

The case has been ongoing since 2015

PrivatBank initiated the arbitration proceedings back in 2015.

The basis for the appeal was the bilateral agreement on the promotion and mutual protection of investments from 1998.

Now the Permanent Court of Arbitration in The Hague has issued a final arbitration award in favor of the Ukrainian bank.

PrivatBank will seek payment of funds

PrivatBank’s board member for reorganization and troubled assets Solvita Deglava stated that the bank expects the decision to be implemented and the entire awarded amount to be paid.

“We will take all necessary measures to ensure payment and protect the interests of the bank and its stakeholders,” Deglava noted.

Thus, after receiving the final decision, the next practical issue for PrivatBank will be its implementation and the actual collection of the awarded funds from the Russian Federation.