The International Court of Arbitration in The Hague, Netherlands recently ruled that Russia must pay $267 million in damages to a Ukrainian energy operator as restitution for its assets located in Crimea, which the Russian Federation illegally annexed in 2014. Brattle worked on behalf of the energy operator, DTEK Krymenergo, performing estimates of damages suffered as a result of the expropriation. The award relied heavily on Brattle’s reports and analysis, and found Brattle’s analysis persuasive on several key quantum points.
DTEK Group is the largest private investor in Ukraine’s energy sector, and its subsidiary DTEK Krymenergo had various assets located in the Crimean Peninsula upon Russia’s annexation of Crimea in 2014. Legal proceedings over the assets – which occupation authorities seized upon occupation – began in 2017, and Covington & Burling LLP retained Brattle on behalf of DTEK Krymenergo in 2018.
Led by Principals Carlos Lapuerta and Dan Harris, a Brattle team performed estimates of the damages suffered by DTEK Krymenergo as a result of the expropriation. Mr. Lapuerta testified on damages at a hearing in the Hague in September 2021.
The $267 million payout to DTEK includes interest and court costs. DTEK declared that the award had fully satisfied its subsidiary’s claim under the Ukraine-Russia bilateral investment treaty.