One of Gazprom’s former main partners in Europe, Wintershall Dea, has initiated two arbitration proceedings against the Russian Federation, claiming expropriation of assets. After leaving the Russian Federation, the company estimated its losses at €5.3 billion, part of which it is apparently seeking to recover through arbitration. Lawyers say the case’s prospects depend on the interpretation of the concept of ‘expropriation’, and sanctions could make it difficult to enforce the court’s decision.
Anna Zabrotskaya, Partner and Head of the dispute resolution practice at Nordic Star Law Offices, recalls that Russia has faced a number of similar claims in the past two years, including the ExxonMobil and Uniper cases. In 2022, ExxonMobil filed a lawsuit in connection with the termination of its participation in the Sakhalin-1 project, and Uniper initiated arbitration proceedings over losses related to Nord Stream 2.
The prospects of the Wintershall-Dea case will depend, among other things, on the interpretation of the concept of “expropriation”, the application of possible exceptions for reasons of security or public necessity, and the objections of the Russian Federation. But even if the claimant wins, sanctions may complicate the process of enforcing the arbitral tribunal’s decision, Anna adds in her commentary for the Kommersant publication (https://lnkd.in/dpBWGM2B) (the full version of the material is available by subscription).