4.2.1 Ukraine’s Arbitration Claim: Gas Extraction in the Black Sea
The precise content of Ukraine’s claim on the merits will remain obscure until
proceedings progress. However, it is known that Ukraine is claiming five violations
of its rights under UNCLOS: these include navigational rights and, most pertinently
here, ‘Ukraine’s rights to hydrocarbon resources in the Black Sea and Sea of
Azov.’
181 This ground was emphasised both in the statement of the Ukrainian
Ministry of Foreign Affairs upon initiating arbitration on 14 September 2016,
182
as well as in a statement by the President the same day.
183 From the language of
Ukraine’s submission, the substance of the claim appears to be that Russia’s
operations violate Ukraine’s sovereign rights to exploit the natural resources in its
EEZ and continental shelf under Articles 56(1)(a) and 77(1) of UNCLOS, and so
constitute a breach of Russia’s duty to respect those rights, under Articles 58(3) and
77(2).
The claim concerns Russia’s operations in the Odessa gas field in the Black Sea.
During its 2014 annexation of Crimea, Russia took control of Chernomorneftegaz, a
joint-stock association owned by Naftogaz—Ukraine’s State-owned oil and gas
company—which conducted operations in the Black Sea.
184 Russia nationalised
Chernomorneftegaz, and transferred its assets to Gazprom, a majority Russian
government-owned gas company.
185 Naftogaz maintains that this takeover was
unlawful, and retains a legal entity of the same name in Kyiv.
186 Indeed, Naftogaz,
along with six of its subsidiaries, commenced arbitration against Russia on
17 October 2016, seeking compensation for seizure of its assets.
187 To date,
Russia has not participated in this arbitration, claiming the tribunal lacks
jurisdiction.
188
181 See further Ukraine v. Russia (Press Release, 31 August 2018).
182 Ukraine, Statement on Initiation of Arbitration, supra note 121.
183 President of Ukraine, Press Release of 14 September 2016: http://www.president.gov.ua/news/
prezident-doruchiv-mzs-podati-pozov-proti-rosiyi-do-mizhnaro-38147.
184 This chapter uses the Russian spelling of ‘Chernomorneftegaz’, in keeping with the entity’s
current public position: Chernomorneftegaz, ‘Kto my’ (2018): http://gas.crimea.ru/o-nas/kto-my.
185 ‘Aktyvy ‘Chornomornaftohazu’ pid oxoronoyu i budut’ peredani Rosiyi, – Konstantynov’
INSIDER (online), 13 March 2014: http://www.theinsider.ua/business/53218dfe2cec8/. See also,
‘Zamglavy ‘Chernomornaftogaza’: my stanem sobstvennost’ju ‘Gazproma” INSIDER (online),
14 March 2014: http://www.theinsider.ua/business/532339463f7a1/; Chernomorneftegaz, ‘Nasha
Istorija’ (2018): http://gas.crimea.ru/o-nas/nasha-istoriya.
186 Andrij Yanitsky, ‘Glava ‘Chernomorneftegaza’ Svetlana Nezhnova: ‘Rossijane nas bojatsja,
pojetomu usilenno ohranjajut burovye platformy” LB.ua (online), 12 September 2017: https://lb.ua/
economics/2017/09/12/376183_glava_chernomorneftegaza_svetlana.html; ‘Rossija ukrala bolee
3,5 mlrd kubometrov ukrainskogo gaza’ Delovaya Stolitsa (online), 22 February 2018: http://
www.dsnews.ua/economics/rossiya-ukrala-bolee-3-5-mlrd-kubometrov-ukrainskogo-gaza22022018063400.
187 Naftogaz, Press Release of 19 October 2016: http://www.naftogaz.com/www/3/nakweb.nsf/0/
551231B8DEF4EB16C22580510024CA6E?.
188 See, e.g., Repousis (2016), pp. 462–466.
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G. Kynaston and R. Brown
The precise content of Ukraine’s claim on the merits will remain obscure until
proceedings progress. However, it is known that Ukraine is claiming five violations
of its rights under UNCLOS: these include navigational rights and, most pertinently
here, ‘Ukraine’s rights to hydrocarbon resources in the Black Sea and Sea of
Azov.’
181 This ground was emphasised both in the statement of the Ukrainian
Ministry of Foreign Affairs upon initiating arbitration on 14 September 2016,
182
as well as in a statement by the President the same day.
183 From the language of
Ukraine’s submission, the substance of the claim appears to be that Russia’s
operations violate Ukraine’s sovereign rights to exploit the natural resources in its
EEZ and continental shelf under Articles 56(1)(a) and 77(1) of UNCLOS, and so
constitute a breach of Russia’s duty to respect those rights, under Articles 58(3) and
77(2).
The claim concerns Russia’s operations in the Odessa gas field in the Black Sea.
During its 2014 annexation of Crimea, Russia took control of Chernomorneftegaz, a
joint-stock association owned by Naftogaz—Ukraine’s State-owned oil and gas
company—which conducted operations in the Black Sea.
184 Russia nationalised
Chernomorneftegaz, and transferred its assets to Gazprom, a majority Russian
government-owned gas company.
185 Naftogaz maintains that this takeover was
unlawful, and retains a legal entity of the same name in Kyiv.
186 Indeed, Naftogaz,
along with six of its subsidiaries, commenced arbitration against Russia on
17 October 2016, seeking compensation for seizure of its assets.
187 To date,
Russia has not participated in this arbitration, claiming the tribunal lacks
jurisdiction.
188
181 See further Ukraine v. Russia (Press Release, 31 August 2018).
182 Ukraine, Statement on Initiation of Arbitration, supra note 121.
183 President of Ukraine, Press Release of 14 September 2016: http://www.president.gov.ua/news/
prezident-doruchiv-mzs-podati-pozov-proti-rosiyi-do-mizhnaro-38147.
184 This chapter uses the Russian spelling of ‘Chernomorneftegaz’, in keeping with the entity’s
current public position: Chernomorneftegaz, ‘Kto my’ (2018): http://gas.crimea.ru/o-nas/kto-my.
185 ‘Aktyvy ‘Chornomornaftohazu’ pid oxoronoyu i budut’ peredani Rosiyi, – Konstantynov’
INSIDER (online), 13 March 2014: http://www.theinsider.ua/business/53218dfe2cec8/. See also,
‘Zamglavy ‘Chernomornaftogaza’: my stanem sobstvennost’ju ‘Gazproma” INSIDER (online),
14 March 2014: http://www.theinsider.ua/business/532339463f7a1/; Chernomorneftegaz, ‘Nasha
Istorija’ (2018): http://gas.crimea.ru/o-nas/nasha-istoriya.
186 Andrij Yanitsky, ‘Glava ‘Chernomorneftegaza’ Svetlana Nezhnova: ‘Rossijane nas bojatsja,
pojetomu usilenno ohranjajut burovye platformy” LB.ua (online), 12 September 2017: https://lb.ua/
economics/2017/09/12/376183_glava_chernomorneftegaza_svetlana.html; ‘Rossija ukrala bolee
3,5 mlrd kubometrov ukrainskogo gaza’ Delovaya Stolitsa (online), 22 February 2018: http://
www.dsnews.ua/economics/rossiya-ukrala-bolee-3-5-mlrd-kubometrov-ukrainskogo-gaza22022018063400.
187 Naftogaz, Press Release of 19 October 2016: http://www.naftogaz.com/www/3/nakweb.nsf/0/
551231B8DEF4EB16C22580510024CA6E?.
188 See, e.g., Repousis (2016), pp. 462–466.
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