Tatneft Files Arbitration Process Against Ukraine

Tatneft announced that it is commencing an international arbitration against Ukraine in connection with the illegal forced takeover of the Kremenchug refinery

The majority of refinery is owned by Tatneft and shareholders aligned with it.

On December 11, 2007, Tatneft sent to the President, the Prime Minister and the Minister of Foreign Affairs of Ukraine a notice of dispute proposing negotiations pursuant to Article 9(1) of the bilateral investment treaty between the Russian Federation and Ukraine to respond to Tatneft's claims arising out of the forcible takeover of the Kremenchug refinery (Ukrtatnafta) in october 2007.

Although a number of senior Ukrainian officials are reported to have referred to this takeover as an "illegal raider action," Ukraine has failed to take any steps to restore the duly appointed Kremenchug management and protect the investment of Tatneft and of the other shareholders of JSC Ukrtatnafta aligned with it.

Since Tatneft filed its notice of dispute, Ukraine has taken no action to address these claims or engage in negotiations with Tatneft. Under the bilateral investment treaty between the Russian Federation and Ukraine, Tatneft has the right to commence an international arbitration against Ukraine at any time after March 11, 2008.

Tatneft will file shortly a request for arbitration, which will name a recognized public international law specialist as its arbitrator. International law firm Cleary Gottlieb will represent Tatneft in this arbitration.

Source: Tatneft

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May
2008
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