The Kyiv appeal court satisfied the petition of the British company JKX Oil&Gas with assets in Ukraine on the recognition and enforcement of the arbitral award of the Permanent arbitration court of London from 6 February 2017 for damages in excess of $ 12 million. About it reported in a press-service of law firm “Ilyashev and Partners” representing interests of JKX.
“Arbitration perfectly understand the situation and found violations by the state when calculating the rent for extraction of oil and gas, as well as in the implementation of capital controls and the transportation of gas. The decision of the Kyiv appellate court recognized and allowed the forced execution of the arbitration decision”, – the press service quoted the words of a law firm senior partner Roman Marchenko.
According to court records, the British losses the company suffered as a result of violation of the agreement between the Government of Ukraine and the Government of the United Kingdom of great Britain and Northern Ireland, signed in February 1993.
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We will remind, in the beginning of 2015, Ukrainian and Dutch subsidiaries of JKX has initiated arbitration proceedings against Ukraine in accordance with the Treaty of accession to the Energy Charter and bilateral agreements on investment protection concluded by Ukraine with Britain and the Netherlands, demanding compensation of more than $ 180 million. The reason was a temporary increase in the Verkhovna Rada of rent for the extraction of gas from 28% to 55% (with production from depths up to 5 km), and then renew this provision for 2015.
In early February of 2017 London arbitration in the dispute oil and gas company JKX Oil&Gas Plc against Ukraine rejected the basic requirements of the company and upheld the increase of rent rates on oil and gas in 2014, but they decided to compensate for JKX 11.7 million of dollars in losses.
According to the Ministry of justice of Ukraine the decision of arbitration on collecting from the state $ 12 million in favor of JKX Oil&Gas Plc associated with the decisions of the National Bank of Ukraine (NBU) for the withdrawal of capital and the Cabinet of Ministers for the purchase of gas by industrial consumers.
The company Homutynnik confirmed the purchase of shares in oil and gas company JKX Oil&Gas
Requirements JKX for a further USD 235 million in respect of the increase of rent payments, the court rejected.
In March 2017, the Ministry of justice of Ukraine appealed to the UK High court to reconsider the decision of the London arbitration.
At the end of October 2017, the High court of England and Wales (High Court of Justice of England and Wales) dismissed the appeal.
In Ukraine, the group JKX owns Poltava petroleum company. Major shareholders JKX are Eclairs Group of Igor Kolomoisky and Gennady Bogolyubov – of 27.47% of the shares of Cascade Investment Fund Vitaly Homutynnik – of 19.92%, Neptune Invest & Finance Corp – 12,95% and others.