Ukraine has won the arbitration case against the shareholders of Ukrtatnafta.

Ukraine has won the arbitration case concerning the claim of shareholders of "UkrTatNafta." The court rejected the appeal from three Cypriot companies seeking to overturn the arbitration ruling in the "UkrNafta" case dated February 4, 2021.

This was reported by the Ukrainian Ministry of Justice.

The Svea Court of Appeal in Stockholm denied the request from Littop Enterprises Limited, Bordo Management Limited, and Bridgemont Ventures Limited to annul the arbitration tribunal's decision in the case against Ukraine, which was issued in favor of Ukraine on February 4, 2021.

The claimants, who collectively own 40.1009% of the shares in PJSC "UkrNafta," initiated arbitration proceedings against Ukraine in 2015, demanding compensation exceeding $6 billion plus interest.

According to Ukraine's Deputy Prime Minister for European and Euro-Atlantic Integration and Minister of Justice Olha Stefanishyna, the arbitration tribunal agreed with Ukraine's position that it lacked jurisdiction to hear this dispute, a conclusion also affirmed by the Svea Court of Appeal.

The claimants' allegations were based on several key aspects:

• the extraction of gas by NJSC "Naftogaz of Ukraine" from "UkrNafta's" gas storage facilities at undervalued prices or free of charge for public consumption;
• failure to comply with Ukrainian court decisions regarding the return of extracted gas;
• increase in the rent fee for the use of natural resources;
• legislative changes concerning the reduction of the quorum required for holding general meetings of joint-stock companies.

The court agreed with Ukraine's key argument that the claimants had not made any actual contribution to the charter capital of PJSC "UkrNafta," and therefore, did not make an investment under the Energy Charter Treaty and had no right to file an arbitration claim.

According to the court's ruling, the claimants are obliged to reimburse Ukraine:

• arbitration costs: $18,927,177.62, plus interest pursuant to Article 6 of the Swedish Interest Act from February 4, 2021, until payment;
• court costs in the case (regarding jurisdictional proceedings): $2,669,131, plus interest pursuant to Article 6 of the Swedish Interest Act starting from January 31, 2025, until payment;
• court costs in the case (regarding proceedings on legal costs): $549,674 and 2,800 Swedish kronor plus interest pursuant to Article 6 of the Swedish Interest Act from January 31, 2025, until payment.

Background. Earlier, Mind reported that detectives from the Bureau of Economic Security of Ukraine (BEB) completed their investigation and submitted an indictment to the court regarding an individual involved in a scheme of illegal acquisition of property belonging to the joint-stock company "UkrTatNafta." Evidence has been obtained that an organized criminal group withdrew over $20 million from "UkrTatNafta's" accounts on the first day of Russia's full-scale invasion of Ukraine.