Oschadbank prepares new arbitration against Russia over losses in eastern and southern Ukraine
Photo: Oschadbank

The state-owned Oschadbank has taken the first step toward a new international lawsuit against Russia. It is about compensation for losses incurred by the institution due to the full-scale war, in particular in the regions that are now partially occupied. This is stated in the bank's statement.

on July 24, the bank sent an official notice to the Russian Federation "on the emergence of a dispute in connection with the violation of the international agreement between Ukraine and the Russian Federation on the promotion and mutual protection of investments.".

This means the loss of a significant amount of property and the inability to conduct business in Donetsk, Luhansk, Kherson, and Zaporizhzhia regions. The Bank claims "significant violations by Russia of its obligations under the agreement and international law in general".

This notice is the first step towards launching a new international arbitration process against Russia. If compensation is not provided within six months, Oschadbank will refer the case to an international arbitration court.

Earlier, the bank had already won an arbitration against Russia for losses in Crimea after its annexation in 2014 – in the amount of $1.1 billion. Oschadbank is currently taking steps to recover these funds through Russian assets abroad.

"We do not expect the aggressor country to voluntarily compensate for the significant losses it has caused. We are ready to fight to protect our rights and receive compensation for our lost investments. Today, an important step has been taken in the new case of Oschadbank against Russia," commented Arsen Miliutin, Deputy Chairman of the Management Board of the bank.

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