Ukrainian court orders Russia to pay nearly US$12.2 million for property destroyed in Ternopil

The Commercial Court of Ternopil Oblast has ordered that UAH 503.36 million (approximately US$12.2 million) be recovered in damages from the Russian Federation due to missile strikes in 2023 in favour of DTZ Industrial Company.

Source: a court ruling dated 27 June

Details: The court found that DTZ, a Zaporizhzhia-based company specialising in the sale of machinery and equipment, entered into a lease agreement with BC Azimuth on 24 February 2022 under which DTZ leased 9,504 sq. m of non-residential premises in Ternopil at 8 Lukianovycha Street, building 4.

Russian armed forces launched cruise missiles on 13 May 2023, striking Ternopil and causing an explosion at 8 Lukianovycha Street. This resulted in a fire at the warehouse belonging to BC Azimuth which was leased by DTZ. The fire occurred on the site of a former combine harvester plant, affecting a warehouse that contained household appliances covering an area of approximately 1,000 sq. m and polymeric materials covering an additional 1,000 sq. m.

The fire report documented the destruction of DTZ's property: household and agricultural equipment, bicycles, motorcycles, electric tools, and a ZAZ car.

A representative of DTZ filed a statement with the police on 15 May, reporting the destruction of property as a result of a fire caused by a missile strike. The statement was registered.

Six forensic commodity assessments valued the total damage incurred by DTZ due to the destruction of its property as a result of Russian missiles exploding in the leased premises at UAH 503.36 million (about US$12.2 million).

The court noted that the Russian Federation, having committed an unprovoked and full-scale act of armed aggression against Ukraine and numerous acts of genocide against the Ukrainian people, has no grounds to invoke immunity to avoid liability for the damage caused to the property belonging to DTZ.

The court also considered the legal principles outlined by Ukraine’s Supreme Court in its decision dated 14 April 2022 in case No. 308/9708/19. These principles state that since the outbreak of the war in Ukraine in 2014, Ukrainian courts have had the authority to disregard the immunity of the Russian Federation in cases where it is a defendant, and can adjudicate cases seeking compensation for damages resulting from the Russian Federation's armed aggression in lawsuits brought against this state.

Furthermore, the court observed that the case file contained no evidence that the plaintiff's destroyed property was being used for military purposes. Therefore, the actions of the Russian Federation constituted a violation of the laws and customs of war. Consequently, Russia bears full responsibility for both the attack and the resulting damage, including the damage to DTZ's property.

Finally, the court ordered that Russia, represented by the Ministry of Justice of the Russian Federation, should pay UAH 503.36 million in damages to DTZ and UAH 847,840 (US$20,070) in court fees to the State Treasury of Ukraine.

The founders of DTZ Industrial Company LLC are Serhii Oleksiuk from Dnipro and the firm ZNVKIF Kominmetkapital, according to Youcontrol.com, a Ukrainian online analytical system for business intelligence, competitive intelligence and counterparty verification.

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