HPP Attorneys is advising Ukraine’s state oil and gas company, Naftogaz, in enforcing a USD 5 billion arbitration award in Finland. The Final Award, issued by a prominent arbitration tribunal at the Permanent Court of Arbitration on 12 April 2023, requires the Russian Federation to compensate Naftogaz for investment treaty violations arising from the unlawful expropriation of Naftogaz’s property in Crimea in 2014. Notwithstanding the tribunal’s award, Russia has refused to pay Naftogaz the amount due. Naftogaz has therefore launched an international enforcement effort, seeking to enforce the award in countries where Russia holds assets, including Finland.
In support of Naftogaz’s enforcement measures in Finland, the Helsinki District Court issued an interim order in August 2024, authorizing the seizure of Russian state-owned assets in Finland in satisfaction of the arbitration award. On 24 October 2024, the Finnish enforcement authority took first steps to enforce the order, freezing substantial Russian state-owned real estate and other assets in Finland, with a cumulative worth estimated in the tens of millions of euros. The asset freeze prevents Russia from disposing of any of its assets in Finland while proceedings to enforce the award are ongoing.
“We are pleased to support and advise Naftogaz on a pro bono basis in Finland, leveraging our expertise in international arbitration enforcement to aid in the recovery of Naftogaz’s losses from Russia,” stated HPP Dispute Resolution partners Mikko Leppä and Tatu Jaarinen.
The enforcement proceedings in Finland are a part of Naftogaz’s global strategy to secure recovery under the award. Covington & Burling LLP serves as the lead legal advisor coordinating Naftogaz’s international enforcement efforts.
Further information:
Covington & Burling LLP press release
Naftogaz news
