Gazprom assets in North Sea seized amid Ukrainian legal battle
2:17 PM EDT, September 3, 2024
The District Court in The Hague has seized 50% of Gazprom's shares in Wintershall Noordzee, a key company extracting gas on the Dutch continental shelf of the North Sea, as a security measure for the claims of the Ukrainian company Slavutich-invest.
On Monday, the District Court in The Hague decided to seize 50% of Gazprom's shares in Wintershall Noordzee, a significant company operating in the gas extraction sector on the Dutch continental shelf of the North Sea. As "Vedomosti" pointed out, this action aims to secure the claims of the Ukrainian management company Slavutich-invest.
The Ukrainian and Dutch treasuries seek compensation from the Russian conglomerate for its takeover of properties in Ukrainian territories occupied by Russia. The court in The Hague ruled that under Ukrainian law, a legal entity such as Gazprom can be held accountable for a state's debts, allowing the enforcement of claims.
Slavutich-invest owns properties in Melitopol, which were occupied by Russian forces in 2022 and remain under Russian control. The Kremlin declared these areas part of Russia. In February 2023, the Ukrainian company filed a lawsuit against Russia, which the District Court in Zaporizhzhia upheld. In May 2024, Slavutich sued Gazprom and its subsidiaries, holding them responsible for Russia's debt.
Court seized Gazprom's assets
The court in The Hague sided with Slavutich's arguments, confiscating Gazprom's shares in Wintershall Noordzee and dismissing the Russian conglomerate's claims. The latter argued the impossibility of applying Ukrainian law outside Ukraine and the violation of state immunity principles. The court ruled that issues related to immunity should be addressed within the arbitration framework between the Netherlands and Gazprom.
Russian lawyers warn that the court's decision in The Hague could set a dangerous precedent in international law, allowing for the circumvention of jurisdictional immunity regulations, which could impact similar cases in other EU countries. However, they do not mention that the areas were illegally annexed to Russia following aggression, which the international community and EU courts do not recognize.
In March this year, Gazprom put its North Sea assets up for sale, planning to dispose of 50% of its shares in the joint venture with Wintershall Dea Nederland Asset Holding B.V. and 100% of its shares in Gazprom International UK Limited, which holds stakes in the consortium exploiting the Sillimanite field.
The initial price for these transactions was set at approximately $375 million. The transaction was also to include the sale of 100% of the shares of Gazprom UK Limited, which owns Gazprom UK Resources S.A., holding stakes in the consortium responsible for developing the Wingate field.
