Oil firm JKX has won its case against Ukraine – the latest in a string of run-ins.
Sara Cockerill QC, sitting as a Judge in the High Court of Justice of England and Wales, ordered that the application brought by Ukraine seeking to set aside the recent Uncitral arbitration award against Ukraine and in favour of JKX be dismissed.
The Government of Ukraine is still liable to pay to JKX the sum of $11.8million plus interest and costs of $0.3million in relation to subsidiary claims, as previously ordered.
The Judge also ordered that Ukraine should pay JKX’s costs of £61,908.65 within 14 days.
It comes after a surprise raid on JKX’s Ukrainian offices in 2016 amid an ongoing battle between the explorer and the Ukrainian government over oil production taxes in the country.
JKX’s Ukrainian subsidiary Poltava Petroleum Company original contested court claims that it owes $33.9m in unpaid taxes. The company’s $200m counter claim against the the government was settled in international arbitration and awarded Poltava damages of $11.8m plus interest, and costs of $0.3m.
Commenting of the judgment, Victor Gladun, JKX’s acting CEO, said, “We are pleased that the High Court recognised the merit of our case. We hope that we can now reach an amicable resolution of the other outstanding legal claims between JKX and Ukraine.”