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D.D.C. upholds jurisdiction over Russia under FSIA arbitration exception; denies stay in enforcement of US$218m PCA Crimea expropriation award (JSC DTEK Krymenergo v Russian Federation)

Published on: 22 April 2025

Published by a LexisNexis Arbitration expert
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JSC DTEK Krymenergo v The Russian Federation No. 23-3330 United States District Court for the District of Columbia Crimean investment

JSC DTEK Krymenergo, part of the DTEK Energy Group of Ukraine, operated the electricity network in Crimea and held a range of local assets. These comprised:

  • Valuable equipment and moveable property
  • Intangible rights, including licences and contractual entitlements
  • Cash holdings and securities

Although Russia annexed Crimea in 2014, Krymenergo retained ownership until 21 January 2015, when Russia reassigned the property to Crimea and took possession of the company’s office premises. In February 2018, Krymenergo initiated arbitration for alleged breaches of the Russia–Ukraine bilateral investment treaty (BIT) before a PCA tribunal chaired by Professor Juan Fernández-Armesto, with J. William Rowley KC appointed by Krymenergo and Professor Vladimir Pavić appointed by Russia. On 1 November 2023, the tribunal unanimously awarded Krymenergo US$207,800,000 in damages, US$9,401,644.76 in lawyers’ fees, and US$1,362,422.88 in administrative costs, together with interest...

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