Joint Stock Company State Savings Bank of Ukraine v The Russian Federation - United States District Court for the District of Columbia Case No 1-23-cv-00764 - Petition to Confirm Arbitration Award - 21 March 2023
Country
Year
2023
Summary
Pursuant to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York Convention"), as codified by the Federal Arbitration Act ("FAA"), 9 U.S.C. §§ 201-208, Petitioner Joint Stock Company State Savings Bank of Ukraine (JSC Oschadbank) ("Oschadbank" or "Petitioner") hereby moves for the confirmation of the November 26, 2018 arbitral award (the "Award") entered in favor of Oschadbank and against Respondent the Russian Federation (the "Respondent" or "Russian Federation") in an arbitration proceeding conducted pursuant to the Arbitration Rules of The United Nations Commission on International Trade Law, 1976 (the "UNCITRAL Arbitration Rules") and under 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, 1998 (the "BIT" or "Treaty"). The Award should be recognized and a money judgment should be entered in Petitioner's favor against the Russian Federation in the amount of the Award and for such other relief as the Court deems just and proper.
INTRODUCTION
1. This is an action under the New York Convention to confirm an arbitral award arising from events in the Crimean Peninsula that occurred in the first half of 2014, culminating in the purported accession (from the perspective of Russian law) of the Crimean Peninsula to the Russian Federation on March 21, 2014 (the "Accession"). The underlying dispute arose from the Russian Federation's wrongful invasion and occupation of Crimea, which resulted in the closure of Petitioner's Crimean operation and the unlawful seizure of its business, assets and valuables.
2. Oschadbank commenced an arbitration (the "Arbitration") under the BIT on January 20, 2016. Despite having been notified of the claim and receiving all pleadings and correspondence at all stages of the Arbitration proceeding, the Russian Federation deliberately failed to participate in the Arbitration. Following a hearing, the arbitral tribunal (the "Tribunal") rendered the Award in favor of Petitioner in which it determined that: Respondent breached the BIT, in particular, Article 5, paragraph 1 (expropriation) of the Agreement on the unlawful expropriation of the Petitioner's investments in the Crimean peninsula; and Respondent is obliged to pay damages of $1,115,167,036.34 plus interest and costs of the proceeding.
3. Petitioner now seeks to confirm this final and binding Award under the New York Convention.