Kiev Announced the Risk of "Giving Trump Cards" to Russia Because of the Tatneft Case
OREANDA-NEWS. If Ukraine fails to comply with the decision of the international arbitration, which awarded it to pay $ 144 million to Russian Tatneft, it runs the risk of “giving trump cards” to Russia for not implementing similar decisions regarding it. Such a statement in an interview with the Ukrainian media was made by the Deputy Foreign Minister of Ukraine for European integration, who heads the Ukrainian delegation in international courts, Elena Zerkal.
“Indeed, there is a court decision on Tatneft. But if we consider that it was taken in 2014, and now it is already the 2019th, then it's clear that once it should be executed. It may be unpleasant for us to carry it out, but if we avoid it, we will give trumps to the Russians to fail to comply with the decision of the courts on investment disputes initiated by Ukrainian companies.
Zerkal warned that non-payment by decision of international arbitration also threatens Kiev with the arrest of financial instruments, in particular the payment of coupons on sovereign financial securities. Tatneft filed with the International Commercial Arbitration Court in Paris after losing its stake in Ukrtatnafta in 2007. The court in 2014 satisfied the claim of the Russian company and obliged the Ukrainian side to pay compensation of $ 144 million. Kiev tried to appeal the decision, but without success.
In addition, Tatneft filed three petitions for execution of the arbitration decision: in the United States, in the High Court of London and in the Moscow Arbitration Court. At the end of June 2017, the Moscow Arbitration Court refused to “Tatneft” in the execution of the decision of the arbitration in Paris. Tatneft challenged the decision in the Arbitration Court of the Moscow District and on August 22, it sent the case for a new review to a lower court. At the same time, the High Court of London granted the petition of Tatneft to execute the decision of the Paris court.