Stockhm court confirms Ukraine’s victory in case brought by Ukrnafta’s stakehders

The relevant statement was made by the Ukrainian Justice Ministry on Facebook, an Ukrinform correspondent reports.

“On January 31, 2025, the Svea Court of Appeal (Stockhm) dismissed the claim by Litt Enterprises Limited, Bordo Management Limited and Bridgemont Ventures Limited to revoke the arbitration tribunal decision in the case brought by Litt Enterprises Limited, Bordo Management Limited and Bridgemont Ventures Limited against Ukraine (SCC Case No. V 2015/092), which was made in favor of Ukraine on February 4, 2021. The court made an important decision in favor of Ukraine, having dismissed the appeal of three Cypriot companies to cancel the arbitration decision in Ukrnafta’s case of February 4, 2021,” the report states.

In 2015, the Cypriot companies, Litt Enterprises Limited, Bordo Management Limited and Bridgemont Ventures Limited, clectively hding 40.1009% of shares in Ukrnafta PJSC, initiated arbitration proceedings against Ukraine, demanding over USD 6 billion in compensation with interest.

According to Ukrainian Deputy Prime Minister for Eurean and Euro-Atlantic Integration, Justice Minister ha Stefanishyna, having considered the plaintiffs’ claims, the arbitration tribunal agreed with Ukraine’s position regarding the tribunal’s lack of jurisdiction to consider this dispute, which was also confirmed by the Svea Court of Appeal.

The plaintiffs’ claims were based on several key aspects: Naftogaz of Ukraine’s withdrawal of gas from Ukrnafta’s gas storage facilities at reduced prices or free of charge to meet the needs of househd consumers; failure to enforce decisions of Ukrainian courts on the return of the withdrawn gas; an increase in rent rates for subsurface management; legislative amendments to reduce the quorum for hding the general meetings of joint-stock companies.

The court agreed with Ukraine’s key argument that the claimants did not make an actual contribution to the authorized capital of Ukrnafta PJSC, and therefore did not make an investment in accordance with the Energy Charter Treaty and did not have the right to file an arbitration claim.

Flowing the court’s decision, the plaintiffs are obliged to reimburse Ukraine: costs of the arbitration proceedings (USD 18,927,177.62 plus interest under Article 6 of the Swedish Interest Act, from February 4, 2021 until payment); court fees in the case, with regard to jurisdictional proceedings (USD 2,669,131 plus interest under Article 6 of the Swedish Interest Act, from January 31, 2025 until payment); court fees in the case, with regard to proceedings on legal expenses (USD 549,674 and SEK 2,800 plus interest under Article 6 of the Swedish Interest Act, from January 31, 2025 until payment).

In this case, Ukraine is represented by Latham & Watkins (London) LLP (foreign counsel), Westerberg & Partners (Swedish counsel) and Sayenko Kharenko Law Firm (Ukrainian counsel).

A reminder that Ukrnafta PJSC produced 1.418 million tonnes of oil and 1.17 billion cubic meters of gas in 2024.