Europe to seize Russian assets to compensate Ukraine for the first time

The Helsinki District Court has upheld a petition by Ukraine’s state-run gas regulation company Naftogaz of Ukraine and five other companies of the Naftogaz Group, and has seized certain assets owned by Russia in Finland. 

These assets are property and other assets valued at tens of millions of dollars.

"This is the first publicly known successful seizure of assets outside Ukraine to enforce an arbitral award in cases involving claims by Ukrainian companies against Russia for the expropriation of property in the Autonomous Republic of Crimea in 2014. It is an interim step towards the actual recovery of assets in favour of Naftogaz Group. 

We are taking active steps to enforce the arbitration award in other target jurisdictions where we have Russian assets," Oleksii Chernyshov, CEO of Naftogaz Group, said. 

It was stressed that the interest due for non-payment of funds in accordance with the arbitration award continues to accrue until full payment of compensation under the arbitration award.

In January-September 2024, Naftogaz Group paid almost 67 billion UAH (about US$1.6 billion) in taxes based on the results of its operations.

In April 2023, the arbitration tribunal under the Permanent Court of Arbitration in The Hague ordered Russia to pay Naftogaz more than $5 billion for damages related to the seizure of the group's assets in Crimea in 2014.

Arbitration awards can be executed through an enforcement mechanism. Thus, if Russia refuses to voluntarily execute the decision, Naftogaz has the right to initiate the process of recognition and admission to enforce the award in the territory of those states where assets of the Russian Federation are located.