The Paris Court of Appeal rejected the Russian Federation’s complaint and upheld the Arbitration Tribunal’s decision from November 26, 2018, which obliges the Russian Federation to compensate for the losses incurred by Oschadbank due to the annexation of Crimea. This became known on July 3.
This is reported by Finway
Confirmation of Decisions and Additional Sanctions for the Russian Federation
The court in France not only confirmed the legality of the arbitration decision but also recognized it as valid within the country. Additionally, the Russian Federation has been ordered to pay 300,000 euros in court costs. Thus, the rights of the Ukrainian banking institution were protected at the international level.
“The appellate court also indicated that the decision of the Paris Arbitration Tribunal from November 26, 2018, is recognized within the territory of France and additionally imposed 300,000 euros in court costs on the Russian Federation.”
Amount of Compensation and Next Steps
Rosa Tapanova, a member of the bank’s supervisory board, reported that the total amount of compensation that the Russian Federation must pay exceeds 1.5 billion dollars. She emphasized that the bank will continue to do everything possible to recover these funds. The chairman of the board, Serhiy Naumov, noted that Oschadbank has become the first financial institution to achieve such a decision against the Russian Federation. According to him, the bank’s success may serve as an example for other Ukrainian companies in their fight for compensation for losses caused by the aggression of the Russian Federation.
At the same time, Deputy Chairman Arsen Milyutin stressed that the bank understands the complexity of enforcing the decision, as the Russian Federation is unlikely to voluntarily fulfill its obligations. Therefore, Oschadbank is preparing for a prolonged legal battle and continues to gather evidence for further claims regarding compensation for losses incurred during the active phase of the war since 2022.
It is worth noting that the Arbitration Tribunal in Paris had already ruled in favor of the Ukrainian state bank in 2018, ordering the Russian Federation to pay 1.3 billion dollars in damages for losses caused by the annexation of Crimea.