Hydropower generating company Ukrhydroenergo starts procedure of investment arbitration with Russia over destruction of Kakhovka HPP
Ukrhydroenergo has initiated the procedure of investment arbitration with Russia to receive compensation for the losses incurred by the destruction of the Kakhovka Hydroelectric Power Plant (HPP).
Source: press service of Ukrhydroenergo
Quote: "A letter with an official notification of the resolution of the dispute has been received by the leader of the Russian Federation, the government and other authorised bodies of Russia. The company's actions are aimed at receiving compensation for damage caused by the destruction of the Kakhovka Hydroelectric Power Plant," the statement said.
The company believes that pursuing international arbitration is the most promising option to receive compensation for the losses caused by the Russian attack on the Kakhovka HPP.
The process is being initiated on the basis of the 1998 Agreement on the Promotion and Mutual Protection of Investments between the Governments of Ukraine and Russia, which expires on 27 January 2025. According to the provisions of the agreement, before initiating a lawsuit, Ukrhydroenergo must send a notice of dispute settlement, following which, after a six-month period for voluntary restitution for damages caused by Russia, it will go to arbitration.
"The company, with the assistance of the Energy Community secretariat and with the participation of two law firms, is developing a high-level strategy of lawsuits and arbitration in order to prosecute the Russian Federation for targeted attacks on the company's infrastructure and assets, including the destruction of the Kakhovka Hydroelectric Power Plant," the press service concluded.
Background:
- Ukrhydroenergo intends to sue Russia in an international arbitration court for the lost earnings and costs of developing and maintaining the station. According to preliminary information, the cost was approximately US$2.5 billion.
- According to Ukrhydroenergo's projections, the Kakhovka HPP can be restored 6-7 years after the region's de-occupation. Previously, it had been reported that it would take at least five years.
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