The proceedings form part of a defining dispute arising from the expropriation of Naftogaz’s oil and gas investments following the Russian Federation’s annexation of Crimea in 2014. The case represents a significant test of the continued effectiveness of investment treaty arbitration in addressing unlawful state measures and preserving investor protections under public international law. The Court of Appeal is expected to render its judgment this summer.

The matter was handled by members of our Dutch arbitration team, working in close cooperation with co-counsel Covington & Burling LLP (New York and Washington, D.C.), which represented Naftogaz in the underlying PCA arbitration in The Hague over the course of more than a decade.

This case illustrates Loyens & Loeff’s experience advising clients on complex disputes concerning expropriation and other (unlawful) state measures under international investment treaties, including in high-stakes setting aside and enforcement proceedings. It also underscores the ongoing relevance of investment treaty arbitration in disputes involving sovereign conduct, including in the context of the ongoing war in Ukraine.