PETITION TO CONFIRM FOREIGN ARBITRATION AWARD
Petitioners NJSC Naftogaz of Ukraine, National Joint Stock Company Chornomornaftogaz, JSC Ukrtransgaz, JSC Ukrgasvydobuvannya, JSC Ukrtransnafta, and Subsidiary Company Gaz Ukraiiny (collectively, "Naftogaz" or the "Petitioners") state as follows:
NATURE OF THE PROCEEDING
1. The Petitioners are Ukrainian companies seeking confirmation of an arbitral award issued on April 12, 2023 (the "Final Award"), in favor of the Petitioners and against the Russian Federation (the "Russian Federation," "Russia," or the "Respondent"). The Final Award was rendered by a distinguished three-member arbitral tribunal seated in The Hague, the Netherlands (the "Tribunal"). The Final Award, together with a correction to the Final Award (the "Correction to the Final Award") issued on June 16, 2023, is attached as Exhibit A to the Declaration of David Z. Pinsky dated June 22, 2023 (the "Pinsky Decl.").
2. The underlying dispute arises from the Russian Federation's unlawful expropriation of the Petitioners' investments in Crimea, including in the City of Sevastopol, following Russia's illegal annexation of that territory in 2014. The Petitioners commenced the arbitration on October 14, 2016, under the dispute resolution provisions of the bilateral investment treaty between the Russian Federation and Ukraine, formally known as the Agreement Between the Government of the Russian Federation and the Cabinet of Ministers of Ukraine on the Encouragement and Mutual Protection of Investments, dated November 27, 1988 (the "Russia- Ukraine BIT" or the "Treaty"). See Pinsky Decl. Ex. B. In the arbitration, Petitioners sought compensation for Russia's multiple, wide-ranging violations of the Treaty's substantive protections with respect to their investments in Crimea.
3. On February 22, 2019, following briefing and a hearing on jurisdiction and liability, the Tribunal rendered a partial award dated February 22, 2019 (the "Partial Award"), in which it held, by majority, that it had jurisdiction over the Petitioners' claims and that the Russian Federation was liable to the Petitioners for its violations of the Russia-Ukraine BIT. See Pinsky Decl. Ex. C. The Partial Award on jurisdiction and liability forms an integral part of the Final Award.
62. For the foregoing reasons, the Petitioners respectfully request immediate confirmation, recognition, and enforcement of the Final Award in accordance with the FAA and the New York Convention, entry of judgment in favor of the Petitioners and against the Respondent, the Russian Federation, and such further relief as the Court may deem just and proper.
WHEREFORE, Petitioners respectfully request that the Court enter an order:
A. Recognizing and confirming in its entirety the Final Award issued on April 12, 2023, together with the Correction to the Final Award issued on June 16, 2023,
which are attached as Exhibit A to the accompanying Declaration of David Z.
B. Directing judgment to be entered for Petitioners in the total amount of USD 4,222,875,858.81 in damages, plus interest at the rate of 6-month EURIBOR
+2% compounded semi-annually from March 18, 2014 until the date of full payment, with the principal balance divided among Petitioners as provided for in the Final Award in the following amounts:
i. to NJSC Naftogaz of Ukraine: USD 350,345,560.81;
ii. to National Joint Stock Company Chornomornaftoga z: USD 2,883,980,000.00;
iii. to JSC Ukrtransgaz: USD 46,129,914.00;
iv. to JSC Ukrgasvydobuvannya: USD 941,722,120.00;
v. to JSC Ukrtransnafta: USD 652,890.00;
vi. to Subsidiary Company Gaz Ukraiiny: USD 45,374.00;
C. Directing judgment to be entered for Petitioners in the amounts of USD 23,889,036.26 and EUR 882,435.90 in reimbursement of the costs of
arbitration, including the Petitioners' reasonable costs of legal representation and assistance, plus interest on these amounts at the rate of 6-month EURIBOR +2% compounded semi-annually from the date of the Final Award (i.e., April 12, 2023) until the date of full payment; and
D. Granting such other and further relief as the Court may deem just and proper.