Summary

Memorandum Opinion and Order

For ten years, several Ukrainian oil and gas companies have been attempting to resolve a dispute with the Russian Federation over investments they maintained in Crimea prior to 2014, when Russia seized control of Crimea and with it, their investments. Pursuant to a treaty between Russia and Ukraine, the companies initiated arbitration against Russia and obtained an arbitral award of more than $4 billion. The companies then initiated this action, seeking enforcement of the award. Russia moved to dismiss, arguing this Court lacks subject-matter jurisdiction over the action. Although foreign states are generally immune from suit in federal courts, the Court concludes that it has subject-matter jurisdiction under the arbitration exception of the Foreign Sovereign Immunities Act (FSIA). See 28 U.S.C. § 1605(a)(6).

In its motion, Russia also claimed that the Court's exercise of personal jurisdiction over it would run afoul of the Fifth Amendment's Due Process clause, but the Court is bound by D.C. Circuit precedent to reject that argument. Hence, the Court will deny the motion to dismiss.