Sayenko Kharenko, acting as Ukrainian counsel, successfully represented Ukraine at the Svea Court of Appeal in a case concerning a setting aside challenge of a USD 6 billion Energy Charter Treaty (ECT) award.
On 31 January 2025, the Swedish court upheld the ECT tribunal’s finding that it lacked jurisdiction to hear the claims brought by three Cypriot claimants, Littop Enterprises, Bridgemont Ventures, and Bordo Management. The Swedish court confirmed that the claimants had failed to establish a protected investment under the ECT. Although the Svea Court of Appeal determined that the tribunal should have examined allegations of bribery and corruption, as well as denial of benefits, as part of the merits of the case rather than jurisdictional issues, this did not change the final outcome, which resulted in a jurisdictional victory for Ukraine.
In addition, the Svea Court of Appeal amended the original cost decision of the tribunal, awarding Ukraine USD 18.9 million plus costs of the setting-aside proceedings.
The original arbitration (SCC Arbitration No. V 2015/092) was the largest investment dispute involving Ukraine. It centred on claims brought by the minority shareholders of Ukrnafta regarding natural gas produced by Ukrnafta, Ukraine’s largest oil and gas producer. The case involved allegations of governmental interference with gas pricing, increased extraction taxes, and legislative amendments affecting the rights of shareholders in joint-stock companies.
Sayenko Kharenko worked with Latham & Watkins and in-house team of the Ministry of Justice of Ukraine to successfully defend Ukraine in the original arbitration in 2021, joined by Westerberg & Partners in subsequent setting aside proceedings in Sweden.
Sayenko Kharenko team working on the project includes Olexander Droug, partner, Tatyana Slipachuk, special advisor and Alina Danyleiko, senior associate, as well as Katalina Shkuro, Maksym Melnyk and Henrietta Yaitska, associates.
