The court found that the Cabinet of Ministers of Ukraine violated part of the commitments undertaken in the framework of the bilateral investment Treaty between the United Kingdom government and the government of Ukraine.
In the UK High court dismissed the appeal of the Ministry of justice on the decision of the international court of arbitration of 6 February 2017 about the reimbursement of $ 11.8 million loss the company JKX Oil & Gas plc (UK), which is engaged in oil and gas extraction from the Ukrainian interior, — the message of the company on the London stock exchange, reports Rus.Media.
As reported, two years ago, JKX Oil&Gas has filed a claim in the Stockholm arbitration court, challenging a dramatic increase in rent on gas production in Ukraine.
We will remind, the major shareholders JKX Oil&Gas plc are the structure of the disgraced oligarch Igor Kolomoisky and his business partner Gennady Bogolyubov (share of 27.5% JKX, which is not a controlling stake of the company), Alexander Zhukov (the owner of 11.45%), and under the control of Russia’s Proxima Capital Group of 19.92% stake in JKX.
6 February 2017, the arbitration court issued a decision in this case, which dismissed most of the claims JKX Oil&Gas. The court obliged Ukraine to pay only $11.7 million, that is met less than 5% of the claim of the company (with more than $250 million). The court found that the Cabinet of Ministers of Ukraine violated part of the commitments undertaken in the framework of the bilateral investment Treaty between the United Kingdom government and the government of Ukraine.
The DOJ regarded this verdict is a success for Ukraine, arguing that the arbitration confirmed the validity of increasing rates of rent for extraction of oil and gas by Ukraine. Nevertheless, the Ministry stated that the decision on the payment of $11.8 million will challenge.
The main asset of JKX Oil&Gas in Ukraine is Poltava petroleum company dealing with hydrocarbon production from Ignatius, Molchanovskoye, Novo-Nikolaevsk, Rudenkovka, Zaplavska, Elizavetovskogo, Chervonoyarske, East fields in Poltava region.