DTEK receives permission to recover $300 million from Russia for Crimean assets

A court in Washington has allowed DTEK to begin enforcement proceedings in the United States. It is about recovering more than $300 million for the seizure of its electricity assets in Crimea after the occupation of the peninsula.

This was reported by the press service of DTEK.

The U.S. Court of Appeals for the District of Columbia Circuit unanimously rejected Russia's appeal, confirming the district court's authority to consider DTEK's motion for damages. The court rejected Russia's "sovereign immunity" argument, noting that the case falls within the exception for arbitral awards under the US Foreign Sovereign Immunities Act (FSIA).

The decision allows DTEK Krymenergo's subsidiary to continue its legal actions in the United States and seek compensation for assets lost after the illegal occupation of Crimea in 2014. The court also emphasized that the decision concerns only the jurisdiction of the US courts and does not affect the status of Crimea or the content of the arbitral award.

In its ruling, the court noted that after Russia's invasion, Ukrainian companies were forcibly deprived of their legitimate assets without any compensation.

DTEK's Chief Legal Officer Oleksandra Moskalenko emphasized that the court's decision is an important signal that Russia cannot avoid responsibility by hiding behind "sovereign immunity." She added that the company will continue to use all available legal mechanisms to protect its rights and restore justice for the companies affected by Russia's actions.

Last year, Naftogaz of Ukraine also launched a legal campaign against Russia to recover more than $5.5 billion for its seized Crimean assets. The company has engaged law firms in the United States and France.

In October 2016, Naftogaz and six other group companies initiated arbitration in The Hague against Russia over the illegal seizure of assets in Crimea. In February 2019, the arbitration partially satisfied the company's claim, and in April 2023, it finally ordered Russia to pay $5 billion in compensation. The aggressor country, Russia, lost the appeal in December 2024.

Анна Бальчінос