Stockholm court confirms Ukraine's victory in the case brought by Ukrnafta shareholders

"On January 31, 2025, the Svea Court of Appeal (Stockholm) dismissed the application of Littop Enterprises Limited, Bordo Management Limited and Bridgemontventures Limited to set aside the arbitral award in the case of Littop Enterprises Limited, Bordo Management Limited and Bridgemont Ventures Limited (SCC Case No. V 2015/092), made on February 4, 2021, in favour of Ukraine. The Court has made an important decision in favour of Ukraine, dismissing the appeal of three Cypriot companies to cancel the arbitral award in the Ukrnafta case of February 4, 2021," the statement said.
In 2015, the Cyprus-based companies Littop Enterprises Limited, Bordo Management Limited and Bridgemont Ventures Limited (hereinafter referred to as the Plaintiffs), which together own 40.1009% of Ukrnafta, initiated arbitration proceedings against Ukraine, claiming compensation in the amount of over USD 6 billion with interest.
According to Olha Stefanishyna, Vice Prime Minister for European and Euro-Atlantic Integration and Minister of Justice, after considering the claims of the plaintiffs, the arbitral tribunal agreed with Ukraine's position that the tribunal lacks jurisdiction to hear the dispute, which was confirmed by the Court of Appeal of the Svea.
The plaintiffs' claims were based on several key aspects: Naftogaz of Ukraine's gas withdrawal from Ukrnafta's gas storage facilities at reduced prices or free of charge for the needs of household consumers; failure to enforce decisions of Ukrainian courts on the return of the withdrawn gas; an increase in the rent rate for subsoil use; legislative amendments to reduce the quorum for general meetings of joint stock companies.
The Court agreed with Ukraine's key argument that the plaintiffs had not made an actual contribution to Ukrnafta's charter capital and therefore had not made an investment under the Energy Charter Treaty and were not entitled to bring the arbitration claim.
According to the Court's decision, the plaintiffs are obliged to reimburse Ukraine: the costs of the arbitration proceedings: $18,927,177.62, as well as interest in accordance with Article 6 of the Swedish Interest Act from February 4, 2021, until paid; court costs in the case (with regard to jurisdictional proceedings) USD 2,669,131 plus interest pursuant to Section 6 of the Swedish Interest Act from January 31, 2025, until paid; court costs in the case (in respect of the court costs proceedings): USD 549,674 and SEK 2,800 plus interest in accordance with Section 6 of the Swedish Interest Act from January 31, 2025 until paid.
Ukraine is represented in the case by Latham & Watkins (London) LLP (foreign counsel), Westerberg & Partners (Swedish counsel) and Sayenko Kharenko Law Firm (Ukrainian counsel).