The District Court of Helsinki has granted the request of Naftogaz of Ukraine and five other companies in the group, imposing a freeze on certain assets belonging to Russia on Finnish territory, the company's press service reported on Monday.
According to the information, these assets include real estate and other properties estimated to be worth tens of millions of dollars.
"This decision is part of Naftogaz's global strategy to recover compensation for the damages caused by the seizure of the group's assets in Crimea, in accordance with the Hague arbitration ruling," the statement notes.
The company clarified that this is also the first publicly known successful asset seizure outside Ukraine in execution of the arbitration ruling regarding claims by Ukrainian companies against Russia due to the expropriation of property in Crimea in 2014.
This ruling serves as an interim step towards the actual recovery of assets in favor of Naftogaz. Meanwhile, interest for non-payment, as stipulated by the arbitration ruling, continues to accrue until full compensation is paid.
"As Russia refuses to voluntarily pay Naftogaz the funds stipulated by the Hague ruling, we continue to utilize all available mechanisms for their recovery. Today, we have moved one step closer to restoring justice. At the same time, we are taking active steps to enforce the arbitration ruling in other targeted jurisdictions where Russian assets exist," noted group head Alexey Chernyshev.
In Finland, Naftogaz is represented pro bono by lawyers Mikko Leppa and Tatu Jaarinen from the law firm HPP Attorneys, with support from Covington&Burling, which serves as the lead legal advisor coordinating Naftogaz's international efforts for enforcement of the ruling.
As reported, in October 2016, Naftogaz and its subsidiaries initiated arbitration proceedings against the Russian Federation for damages due to the seizure of their assets in Crimea, and in September 2017, a petition was filed with the tribunal at the Hague court.
The arbitration tribunal at the Permanent Court of Arbitration in The Hague ordered the Russian Federation in April 2023 to pay Naftogaz of Ukraine $5 billion for damages caused by the seizure of the Naftogaz group's assets in Crimea in 2014.