Wintershall, the German oil and gas company, has launched a historic legal challenge against the Kremlin in a bid to recover assets that were seized by the Russian government. The case is being heard at an arbitration court in The Hague, Netherlands, and its outcome could have far-reaching implications for multinational companies operating in Russia. For over two decades, Wintershall has been investing in Russian energy projects and doing business with the country’s largest energy players. However, when economic sanctions were imposed on Russia following its annexation of Crimea in 2014, Wintershall became the target of asset seizures. Now the company is seeking justice through a landmark case that could impact how foreign companies operate within Russia’s borders. Read on to learn more about this historic lawsuit and its potential consequences.
Wintershall AG, a German oil and gas company, launches a lawsuit against the Kremlin
In what is being seen as a historic move, German oil and gas company Wintershall AG has announced that it is suing the Kremlin over the seizure of its assets in Russia.
The company, which is a subsidiary of BASF, said in a statement that it had filed a lawsuit with an international arbitration court in The Hague, seeking compensation for the “illegal expropriation” of its assets in Russia.
Wintershall has been operating in Russia for more than 25 years, and its assets include a 50% stake in the Achimov Urengoy natural gas field, which is one of the largest fields in the world.
However, in recent years, the Kremlin has been moving to consolidate state control over the country’s energy sector, and this has led to increased tensions with foreign investors like Wintershall.
In 2014, for example, Rosneft took full control of another large gas field that was jointly owned by Wintershall and ExxonMobil. And earlier this year, Rosneft also acquired a majority stake in Bashneft, another oil company that was partially owned by foreign investors.
The seizures of these assets have been widely criticized by the international business community, and Wintershall’s lawsuit is likely to add to those concerns.
The company is seeking $7 billion in damages
Wintershall, a German oil and gas company, has filed a lawsuit against the Kremlin seeking $7 billion in damages. The company alleges that the Russian government unlawfully seized its assets in Crimea after the region was annexed by Russia in 2014.
The lawsuit, filed in an international court, is the first of its kind against the Russian government. It is also one of the largest lawsuits ever filed against a sovereign state. Wintershall is seeking compensation for the value of its assets, which it says were confiscated by the Russian government.
The case is likely to be complex and could take years to resolve. However, it could set a precedent for other companies who have had their assets seized by Russia.
Wintershall alleges that the Kremlin unlawfully seized its assets in 2014
In 2014, the Kremlin seized the assets of German oil and gas company Wintershall. The company has now launched a historic lawsuit against the Russian government, alleging that the seizure was unlawful.
Wintershall argues that the seizure violated international law and the terms of a production-sharing agreement between the company and the Russian government. The company is seeking damages of over $1 billion.
This is not the first time that the Kremlin has been accused of unlawfully seizing foreign assets. In 2012, ExxonMobil filed a similar lawsuit against Russia over the seizure of its assets in Sakhalin.
The case is being heard by an international tribunal
In 2014, Russia seized a number of assets belonging to German oil and gas company Wintershall. The company has now launched a historic lawsuit against the Kremlin, claiming that the seizure was illegal and requesting compensation for the lost assets.
The case is being heard by an international tribunal, which will determine whether or not the Russian government acted illegally in seizing the assets. This is a significant case, as it could set a precedent for future disputes between foreign companies and the Russian government.
Wintershall is hopeful that the tribunal will rule in its favor and order the Russian government to compensate the company for its losses. This would be a major victory for the company, and could deter future asset seizures by the Kremlin.
Wintershall’s CEO says the company is
As the CEO of Wintershall, Mario Hermann is no stranger to Russian politics. The German company has been doing business in Russia for over 25 years, and Hermann himself has been working in the country for two decades. So when he says that the Kremlin’s recent seizure of Wintershall’s assets is “unfair and unjust,” you can bet he knows what he’s talking about.
Hermann says that Wintershall had all the necessary permits and approvals to operate its oil and gas fields in Russia, but that the Kremlin suddenly revoked those permissions without any explanation. Wintershall has since filed a lawsuit against the Russian government, but Hermann says it’s not about the money.
“We just want to be treated fairly,” he said. “We have always been a reliable partner of Russia and we will continue to be one. But this treatment is not fair.”
Hermann says he hopes the lawsuit will send a message to the Kremlin that foreign investors will not tolerate being treated unfairly. He also hopes it will encourage other companies to stand up for their rights in Russia.
The Kremlin has not yet comment on the lawsuit
The Kremlin has not yet comment on the lawsuit filed by German energy company Wintershall against the Russian government over the seizure of its assets in Crimea.
Wintershall, a subsidiary of chemical giant BASF, filed the lawsuit in an international arbitration court in The Hague on Wednesday, seeking damages for the expropriation of its assets in Crimea.
The company said it had been “forced to take this step” after “repeated attempts” to negotiate a compensation agreement with the Russian authorities had failed.
“We are convinced that our case is solid and we will use all legal means at our disposal to defend our interests,” said Wintershall CEO Mario Mehren in a statement.
The Kremlin has not yet responded to the lawsuit, but it is likely to argue that the expropriation of Wintershall’s assets was justified given the circumstances surrounding Russia’s annexation of Crimea from Ukraine in 2014.
