A French court has authorized the enforcement of a $5 billion arbitration award against Russia for damages caused to Ukraine's state-owned energy company Naftogaz during the occupation of Crimea, the company announced on April 17.
The decision allows Naftogaz to begin legal recovery efforts in France, including seizing Russian state assets to satisfy the award.
The enforcement, known legally as exequatur, follows a 2023 ruling by the Permanent Court of Arbitration in The Hague, which found Russia liable for the illegal expropriation of Naftogaz assets following the 2014 annexation of Crimea.
"This is an extremely important legal victory for Naftogaz Ukraine and five other group companies. It allows Naftogaz to start recovery proceedings in France," Naftogaz Group head Roman Chumak said in a statement.
As part of its enforcement campaign, Naftogaz has already placed encumbrances on several Russian state-owned assets in France totaling over 120 million euros (around $136 million).
The move is the first step toward forcibly recovering damages if Moscow refuses to comply with the arbitration ruling.
Under international law, arbitration awards can be enforced in multiple jurisdictions through domestic courts. If a defendant's state fails to pay voluntarily, creditors can seek to seize foreign-held assets to satisfy the judgment.
Russia's 2014 annexation of Crimea, following the ousting of pro-Kremlin President Viktor Yanukovych during Ukraine's EuroMaidan Revolution, led to the unlawful takeover of Ukrainian state and corporate property across the peninsula.
Naftogaz, Ukraine's largest energy firm, lost critical infrastructure, natural gas reserves, and service networks in the region. Its case against Russia became one of the most high-profile corporate arbitration claims arising from the annexation.
Tim Zadorozhnyy
(Updated: )
