A notable Ukrainian entrepreneur, Rinat Akhmetov, has filed an investment treaty claim against Russia due to the confiscation of assets in the occupied territories of eastern Ukraine. This action, rooted in the self-proclaimed Donetsk and Luhansk republics, seeks compensation for the disruption of his business activities and the expropriation of assets.
The claim, lodged under the bilateral investment treaty between Ukraine and Russia, was announced by SCM Group. The company maintains that these regions have been under Russian influence or control since 2014. For further information on this case, visit: https://globalarbitrationreview.com/article/ukraines-richest-man-brings-treaty-claim-against-russia. The assets in question, managed through SCM, include:
- The Azovstal steel plant in Mariupol;
- The Donbass Arena, a stadium worth $400 million;
- Various other industrial and commercial properties.
Akhmetov has expressed that, like many other Ukrainians, he has been affected since the conflict’s onset in 2014. He is seeking full compensation from Russia for all losses incurred in the unlawfully occupied territories of Donetsk and Luhansk from that period onwards. This claim represents the first known legal action concerning assets in eastern Ukraine. However, several claims have been made previously regarding the seizure of Ukrainian assets in Crimea after its annexation by Russia in 2014.
The current claim addresses Russia’s illegal activities from 2014 through 2017 and beyond. The Azovstal plant, which previously contributed to 40% of Ukraine’s steel production, was nearly obliterated during the 2022 Mariupol siege. This vast industrial complex, which includes nuclear bunkers and tunnels, was utilized by Ukrainian forces to withstand Russian military assaults during an extended conflict.
Akhmetov has committed to reinvesting any compensation awarded into the reconstruction of the Ukrainian economy. Additionally, he is pursuing a separate legal action against Russia at the European Court of Human Rights for the destruction of his businesses in Ukraine.
In a related judgment, the European Court of Human Rights ruled in January that areas of eastern Ukraine under separatist control were within Russia’s jurisdiction from May 2014 until at least January 2022. This preliminary decision arose from cases brought by the Netherlands and Ukraine concerning alleged human rights violations in Donetsk and Luhansk, including the downing of Malaysia Airlines Flight 17 in eastern Ukraine in 2014.
This lawsuit represents a crucial effort to secure accountability for economic damages caused by the conflict in eastern Ukraine, potentially setting a precedent for future claims related to the region.
