DTEK announces that a court in Washington, D.C. has ruled that U.S. courts have legal jurisdiction to hear a case brought by the company against russia over the seizure of its electricity assets in Crimea, Ukraine.
The U.S. Court of Appeals for the D.C. Circuit unanimously rejected russia’s appeal and affirmed that the U.S. district court can hear DTEK’s petition to enforce an arbitration award worth more than $300 million.
The court rejected russia’s claim that it was protected by sovereign immunity, ruling that the case falls under the arbitration exception of the U.S. Foreign Sovereign Immunities Act (FSIA). The decision allows the company’s subsidiary DTEK Krymenergo to continue its legal efforts in the United States to recover compensation for assets taken after russia’s illegal occupation of Crimea in 2014.
The judges also made clear that the ruling does not address the status of Crimea or reconsider the merits of the arbitral award, but deals only with whether U.S. courts have the authority to enforce the award.
In its ruling, the court noted that Ukrainian companies that operated in Crimea had their “lawful, visible, and stationary” businesses forcibly taken without compensation following russia’s invasion.
Commenting on the ruling, Oleksandra Moskalenko, Chief Legal Officer at DTEK, said:
“This decision sends a clear and strong message that russia cannot avoid accountability by hiding behind sovereign immunity. It is a crucial step toward enforcing the arbitration award and the rule of law. We will keep persistent in pursuing all available legal avenues to protect our rights and those of businesses affected by russia’s unlawful actions.”
