Russia to Challenge Asset Seizure in Finland

MOSCOW (Reuters) – Russia will file a legal challenge against the seizure of Russian state assets in Finland as part of a claim by Ukrainian energy company Naftogaz.

Naftogaz's lawyers announced on Sunday that they secured a freeze on Russian state-owned real estate and assets in Finland worth tens of millions of dollars. The company has sought legal redress against Russia since 2016, aiming for compensation for losses incurred after Russia annexed Crimea in 2014.

"Of course, we will dispute this in court. Naturally, the Russian Federation will defend its property interests, so we will use all legal mechanisms to protect our interests," Kremlin spokesman Dmitry Peskov stated.

In April 2023, a tribunal in The Hague ordered Russia to pay Naftogaz $4.22 billion plus interest and legal costs for the seized assets in Crimea. However, Moscow has yet to comply with the ruling.

Naftogaz CEO Oleksiy Chernyshov commented that as Russia refuses to pay, they will pursue all available avenues to recover the owed funds in jurisdictions holding Russian assets.

David Pinsky, a partner at Covington representing Naftogaz, noted that the Finnish asset freeze is part of a broader strategy to secure compensation, involving actions in the United States and Britain.