French Supreme Court upholds $1.1 billion verdict in favor of Ukraine’s Oschadbank

7 December 2022, 10:18 PM
Oschadbank daily charges Russia about $100 thousand in fines (Photo:Oschadbank via Facebook)

Oschadbank daily charges Russia about $100 thousand in fines (Photo:Oschadbank via Facebook)

The Supreme Court of France has upheld the decision of the International Arbitration Chamber of Paris to recover $1.1 billion from Russia – in favor of Ukraine’s state-owned bank Oschadbank, Ukraine’s Deputy Justice Minister Iryna Mudra said in a Facebook post on Dec. 7. The compensation also includes accruing interest – about $100,000 per day – until the payment is eventually made.

The legal dispute was sparked by illegal seizure of Oschadbank assets in Crimea, following Russia’s illegitimate annexation of the peninsula in 2014.

Mudra noted Oschadbank's legal claim against Russia included more than 30,000 pages of documents, weighed 76 kilograms, and occupied six boxes.

“Thirty thousand pages proving the illegality of the expropriation of Oschadbank's assets in (occupied) Crimea,” Mudra emphasized.

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“Each page substantiates specific facts of violation of international law and confirms that Oschadbank has the right to fair compensation.”

The court ruled to issue letters of execution to collect from Russia, represented by the Ministry of Justice, in favor of Oschadbank, for $1.111 billion in damages, as well as interest from March 31, 2014 at a semi-annual LIBOR + 2% rate, and other expenses in the amount of $3.87 million.

On Nov. 26, 2018, the International Arbitration Chamber of Paris ruled in favor of Oschadbank – to recover from Russia the losses incurred by the bank as a result of Moscow’s illegal annexation of Crimea in 2014.

The Russian Ministry of Justice stated that it doesn’t recognize the decision of the international arbitration and wouldn’t compensate for Oschadbank's losses.

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