Ukrainian bank appeals to Russia to compensate the losses due to Crimea annexation

“Oschadbank”, public joint-stock company State Savings Bank of Ukraine, lost 670 million dollars as a result of the annexation of Crimea Russia
18:07, 9 July 2015

Фото из открытых источников

Ukrainian "Oshchadbank" has sent a written request to the authorized Russian representatives to reimburse the losses caused by the annexation of Crimea, as informed by the bank chairman Andrii Pyshnyi.

Ukrainian "Savings" of the Russian Federation for damages caused to him by Russia's annexation of Crimea. This Wednesday, July 8, board chairman "Savings Bank" Andrew Lush. Bank indicates in the request for numerous violations of the intergovernmental agreement between Kyiv and Moscow signed in 1998.

The head of the bank claimed that the dispute of "Oschadbank" against the Russian Federation "is purely commercial one, as it is based on bilateral agreements (since November 27, 1998) of Ukrainian and Russian governments.  “Oschadbank” operates exclusively within its own interests, being an investor and a legal entity bank works  for economic protection and renovation of its rights in Crimea, " - he said.

Actually, “Oschadbank”  wants to create a legal precedent. This case is to inflame other Ukrainian businesses and banks to defend their rights.

Since filing the request begins a 6-month period of ironing up constrains. In case of failure, the litigation process will be settled.

The request was to particular Russian President Vladimir Putin and Prime Minister Dmitry Medvedev.

Another Ukrainian bank "PrivatBank" has already initiated a lawsuit on the investment loss in Crimea against the Russian Federation. This claim of “PrivatBank”  concerning loss of investments in Crimea was assessed as baseless by Russian Ministry of Justice. It was also stated that Russia does not recognize the jurisdiction of international arbitration to review of the dispute.

Russia does not recognize the jurisdiction of international arbitration to review of the dispute, as reported by Rbc with reference to the press office of Russian Ministry of Justice.

Bank’s lawsuit against Russian Federation, which was submitted to international arbitration in the Permanent Court of Arbitration (Hague), cannot be considered with regard to intergovernmental agreement between Russia and Ukraine on mutual protection of investments (from November 27, 1998). Accordingly, this agreement cannot be the basis for the formation of arbitration dispute resolution,” stated MOJ press service. Article 9 of the Agreement, mentioned by MOJ, said that investor from one country may apply to international arbitration against the other country in order to protect their interests.
MOJ press service also noted that, according to the agreement, the term "investment" means all kinds of property and intellectual values invested by an investor of one Contracting Party in the territory of the other Contracting Party under its law, said UNIAN.

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