The Stockholm International Arbitration Court has dismissed a $6 billion claim against Ukraine filed by the shareholders of oil and gas company Ukrnafta, namely oligarchs Ihor Kolomoisky and his top business partner Gennadiy Bogolyubov.
The claimants had accused Ukraine’s government of extracting natural gas that belonged to Ukrnafta at below-market prices or even for free, on top of imposing inflated fees on the company for subsoil use.
The court ruled that it lacks jurisdiction in the case.
“After more than six years of hearings, the arbitration court has rejected their claim,” Ukraine’s Justice Minister Denis Malyuska wrote on Facebook on Feb. 4.
According to the official, three Cyprus-based offshore companies, Littop Enterprises Limited, Bridgemont Ventures Limited and Bordo Management Limited submitted the case to the arbitration court in 2015.
Kolomoisky and Bogolyubov are the ultimate beneficiaries behind all three companies owning nearly 40% of Ukrnafta, the country’s largest oil producer.
Since 2015, the disputed amount has grown to over $6 billion.
“Just for the sake of better understanding of the claim’s amount: The offshore companies are trying to recover the value of all government appropriations on education and science in 2021 or nearly half of all retirement pension spending,” Malyuska wrote.
The decision was been delayed on several occasions, according to the minister.
“It seemed that the complainants were suspecting something and dragging the trial out. But… the court acknowledged the lack of its jurisdiction,” he added, calling the decision a “super mega victory” for Ukraine.
