Helsinki court freezes Russian assets in Finland at Naftogaz’s request

The Helsinki District Court granted Naftogaz Ukrainy and five of its group companies' request to freeze certain Russian assets in Finland, as announced by Naftogaz on Monday.

The frozen assets include real estate and other holdings valued at tens of millions of dollars.

"This decision is part of Naftogaz's global strategy to recover damages for the seizure of the group's assets in Crimea, based on a ruling from The Hague arbitration," the group said.

Naftogaz also reported that this is the first known successful freeze of Russian assets outside Ukraine in execution of arbitration rulings related to Ukrainian claims against Russia for the expropriation of property in Crimea in 2014.

The ruling is a preliminary step toward the actual collection of assets in Naftogaz's favor. Meanwhile, interest penalties outlined in the arbitration decision continue to accumulate until full compensation is received.

"Since Russia refuses to voluntarily pay Naftogaz the compensation mandated by the Hague decision, we are pursuing all available mechanisms to enforce it. Today, we are one step closer to restoring justice. At the same time, we are actively pursuing enforcement of the arbitration decision in other targeted jurisdictions where Russian assets are present," said Naftogaz Group Head Oleksiy Chernyshov.

In Finland, Naftogaz is represented pro bono by attorneys Mikko Leppa and Tatu Jaarinen from HPP Attorneys, supported by Covington & Burling as Naftogaz's primary legal counsel for coordinating international enforcement efforts.

In October 2016, Naftogaz and its subsidiaries initiated arbitration against Russia to recover damages due to the seizure of their assets in Crimea. The case was submitted to The Hague tribunal in September 2017.

In April 2023, the arbitration tribunal under the Permanent Court of Arbitration in The Hague ordered Russia to pay Naftogaz more than $5 billion for damages related to the seizure of the group's assets in Crimea in 2014.