News date: 5 November 2015
Roman Marchenko, Senior Partner at Ilyashev & Partners Law Firm, head of Litigation and Arbitration Practice, participated in the seminar “Implementation of the latest international experience of international commercial and investment arbitration for effective compensation for damages in connection with the temporary occupation of a part of Ukraine’s territory by the Russian Federation”. The seminar was organized by the Ministry of Justice of Ukraine on November 4, 2015.
In his speech Roman Marchenko touched upon the special aspects of recognition and enforcement of awards of the International Centre for Settlement of Investment Disputes (ICSID). In particular, he spoke in detail on the practical application of sovereign immunity often causing unsuccessful attempts of enforcement of arbitral awards abroad.
The relevant practice can be confirmed by the cases of Sedelmayer v. the Russian Federation and YUKOS v. the Russian Federation. In addition, Roman mentioned the case of JKX Oil & Gas Plc, Poltava Gas BV v. Ukraine where the Stockholm Court of Arbitration ordered Ukraine to refrain from imposing rent for use of subsoil for natural gas production by Poltava Petroleum Company in excess of the rate of 28%. Ukrainian courts did not recognize it, because the award of the Stockholm Court of Arbitration contradicts the rules of the Tax Code of Ukraine on the rates of rent for the use of subsoil for natural gas production.
At the event, the leading experts in international arbitration, partners and attorneys of law firms discussed analyzing the alternative mechanisms for compensation for damages connected with the temporary occupation of Ukraine’s territory by the Russian Federation, recognition and enforcement of foreign arbitral awards, and introduction of international best practices.