News

10-06-2016

Volodymyr Yaremko about the perspectives of the claim filed by the owners of Ukrnafta with Stockholm Arbitration Court for Forbes

As far back as in June 2015 the offshore owners of Ukrnafta filed a claim with Stockholm Arbitration Court to the amount of about USD 5 billion and have reminded about this before the meeting of the Supervisory Board of the company. Having signed the European Energy Charter (1994), Ukraine assumed a number of obligations that can not be ignored.

Volodymyr Yaremko, a Counsel at Spenser and Kauffman, explained in his interview for Forbes whether a cooperation agreement represents a relevant legal instrument based on which offshore companies can submit for recovery similar amounts.

‘The issue of priority that is likely to arise before the arbitrators pertains to whether Stockholm Arbitration Court has jurisdiction to consider the claims of the Cyprian companies, more specifically, whether the plaintiffs can be regarded as investors in the Ukrainian economy. If the arbitration panel decide that it is competent to consider the dispute, it will have to examine all the circumstances the parties of the dispute will refer to, for example, agreements and arrangements between state-owned and private shareholders of ‘Ukrnafta’, including former ones’, -V. Yaremko said.

It should be recalled that the claim was filed under the Energy Charter Treaty (1994) to which Ukraine is a party. Under the Treaty that has been in full force and effect for Ukraine since 1999, Ukraine assumed a huge number of obligations before foreign investors in the area of energy.