A Landmark Legal Victory for Ukraine: Oschadbank Wins $1.5 Billion Case Against Russia
On July 3, Ukraine’s largest state-owned bank, Oschadbank, announced a historic legal victory over Russia, securing over $1.5 billion in damages and an additional 300,000 euros ($330,000) in legal costs for losses incurred due to Russia’s annexation of Crimea in 2014. The Paris Court of Appeal upheld an arbitration ruling from November 2018, rejecting Russia’s challenge to the compensation claim. This landmark ruling marks a significant step in Ukraine’s efforts to hold Russia accountable for the damages caused by the occupation of Crimea and to recover lost assets.
The decision, announced by the bank after the Paris appeals court rejected Russia’s challenge to the 2018 arbitration ruling, reinforces the legal claim that Russia’s annexation of Crimea violated international law. Oschadbank, which is the largest state-owned bank in Ukraine, had previously reported the seizure of over 87 million euros ($102 million) in Russian assets in France as part of its ongoing campaign to recover war-related losses. The bank has been actively pursuing Russian assets across multiple jurisdictions to enforce the arbitration award.
“The victory proves that efforts to force the aggressor state to answer legally for damages caused by the occupation of part of Ukraine’s territory have good prospects,” said Rosa Tapanova, a member of Oschadbank’s supervisory board. Oschadbank Chairman Serhii Naumov emphasized that this is the first Ukrainian bank to win such a case against Russia. The ruling not only highlights the legal consequences of Russia’s actions but also underscores the ongoing impact on Ukraine’s economy and national interests.
“We understand that the Russian Federation will never voluntarily comply with the court’s decision, and we are prepared for a long struggle,” said Arsen Miliutin, deputy chairman of Oschadbank’s management board. “At the same time, we are confident that we will win, and Russia will pay not only the amount of damages caused, but also interest for all this time.” The statement reflects the determination of Ukrainian officials and the bank’s leadership to pursue justice and financial redress for the damages inflicted by Russia’s aggression.
The Oschadbank victory adds to a growing list of Ukrainian legal wins against Russia. In June, Naftogaz CEO Serhii Koretskyi announced that an international arbitration tribunal in Switzerland had ordered Russia’s Gazprom to pay the Ukrainian state energy company $1.37 billion after the Russian firm stopped fulfilling contract obligations in May 2022. This further illustrates the broader pattern of Ukraine’s legal and financial pushback against Russian actions, demonstrating the resilience and strategic approach of Ukrainian institutions in seeking reparation and justice for the ongoing conflict.
As the conflict in Ukraine continues, the legal and financial battles with Russia are becoming increasingly significant. The Oschadbank case, along with the Naftogaz ruling, highlights the importance of international legal mechanisms in holding accountable those who violate international law and disrupt global economic stability. These legal victories also serve as a powerful statement of Ukraine’s commitment to justice and the protection of its national interests.
While the immediate financial impact of the ruling may take time to materialize, the symbolic and strategic significance of these legal battles cannot be overstated. They represent a crucial component of Ukraine’s strategy to combat Russian aggression and to secure the resources needed for its ongoing defense and recovery efforts. The international community’s response to these legal actions will be closely watched, as it may influence the broader geopolitical dynamics of the conflict and the future of international legal enforcement.