Paris court overturns decision on payment of more than $ 1 billion by Russia to a Ukrainian bank

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The Paris Court of Appeal confirmed that Russia should not pay $ 1.3 billion to the Ukrainian Oschadbank. This was reported on the website of the Ministry of Justice of the Russian Federation.

“On March 30, 2021, the Paris Court of Appeal overturned the 2018 arbitration award on the claim of the State Savings Bank of Ukraine PJSC,” it was reported.

It is clarified that the claims of the Ukrainian bank were related to the alleged expropriation of its property after the reunification of Crimea with Russia. Russia had to pay Oschadbank compensation for the alleged losses caused to the plaintiff in the amount of more than $ 1 billion.

According to the press service of the Ministry of Justice, the Paris Court of Appeal upheld the position of the Russian Ministry of Justice that the arbitral tribunal did not have jurisdiction to consider the dispute, and also overturned the tribunal’s decision.

The Crimean branch of Oschadbank was created during the Soviet period, earlier than January 1, 1992, which means that these investments are not subject to the Agreement on the Encouragement and Reciprocal Protection of Investments, the Ministry of Justice emphasizes.

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The decision of the Paris court “will have precedent significance in other cases involving so-called” Ukrainian investors “, which are considered by arbitration courts and state courts in European jurisdictions,” the press service concluded.

In March 2014, a referendum was held in Crimea, as a result of which the peninsula became a territorial part of Russia, and Sevastopol became a city of federal significance.