Ukraine has upheld the arbitration tribunal's ruling in its favor in Swedish courts regarding the lawsuit from shareholders of "Ukrnafta."

The Court of Appeal in Stockholm has upheld Ukraine's victory in the arbitration case brought by the shareholders of "Ukrnafta," as reported by the Ministry of Justice of Ukraine.

On January 31, the Svea Court of Appeal (Stockholm) rejected the claims of the companies "Littop Enterprises Limited," "Bordo Management Limited," and "Bridgemont Ventures Limited," which sought to annul the arbitration ruling regarding "Ukrnafta."

The arbitration tribunal's decision from February 4, 2021, in favor of Ukraine, remains in effect, marking another triumph for the state in international legal disputes.

The Cypriot companies Littop Enterprises Limited, Bordo Management Limited, and Bridgemont Ventures Limited (hereinafter collectively referred to as the claimants), which together own 40.1009% of the shares in PJSC "Ukrnafta," initiated arbitration proceedings against Ukraine in 2015, demanding compensation exceeding 6 billion US dollars with interest.

"As a result of reviewing the claimants' demands, the arbitration tribunal agreed with Ukraine's position regarding the tribunal's lack of jurisdiction to consider this dispute, which was also confirmed by the Svea Court of Appeal," stated the Vice Prime Minister for European and Euro-Atlantic Integration of Ukraine – Minister of Justice of Ukraine Olha Stefanishyna.

The claimants' allegations were based on several key aspects:

- the extraction of gas by NJSC "Naftogaz of Ukraine" from "Ukrnafta's" gas storage facilities at undervalued prices or free of charge for the needs of the population;

- the failure to comply with Ukrainian court rulings regarding the return of the extracted gas;

- the increase in the rent rate for subsoil use;

- legislative changes concerning the reduction of the quorum for holding general meetings of joint-stock companies.

The court agreed with Ukraine's key argument that the claimants did not make an actual contribution to the charter capital of PJSC "Ukrnafta," and therefore did not make an investment under the Energy Charter Treaty and had no right to file an arbitration claim.

According to the court's decision, the claimants are obliged to reimburse Ukraine:

• the costs of the arbitration proceedings: 18,927,177.62 US dollars, plus interest according to Article 6 of the Swedish Interest Act from February 4, 2021, until payment.
• court costs in the case (regarding jurisdictional proceedings): 2,669,131 US dollars, plus interest according to Article 6 of the Swedish Interest Act, starting from January 31, 2025, until payment.
• court costs in the case (regarding the proceedings on court costs): 549,674 US dollars and 2,800 Swedish kronor plus interest according to Article 6 of the Swedish Interest Act from January 31, 2025, until payment.