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Arbitration court rejects Russia's appeal request in dispute with PrivatBank

The Permanent Court of Arbitration in The Hague rejected the request of the Russian state to reconsider its earlier jurisdiction and liability decisions issued in a more than $1 billion dispute involving JSC CB PrivatBank, the Ukrainian lender said Sept. 13.

PrivatBank launched arbitration proceedings against Russian authorities in April 2015 over losses resulting from the annexation of Crimea by Russia, and the Tribunal announced its interim award and partial award decisions in February 2017 and February 2019, respectively.

The Tribunal confirmed in its February 2019 ruling that it has jurisdiction over the dispute and that Russia breached its obligations under the Ukraine-Russia bilateral investment treaty by expropriating PrivatBank's investments in Crimea. The court also noted at the time that the Ukrainian lender is entitled to full compensation for the expropriation.

The Russian Federation did not participate in the arbitration proceedings until after the Tribunal had issued its decisions. The Russian state has now appointed counsel of record in the arbitration, and the proceedings will continue to their next phase, PrivatBank noted.