According to Mr Andriy Astapov the managing partner of the AstapovLawyers Law Firm the likelihood of a ruling in favor of Centragas Beteiligungs Holding AG which is under control of Dmytro Firtash in a case concerning the ownership of 11 billion cubic meters of gas which was allegedly expropriated from RUE by Naftogaz Ukrainy is very high.

He was commenting on a report by Centragas Beteiligungs Holding AG on its notification to the Ukrainian government of the start of litigation in accordance with the terms of the Energy Charter on the expropriation of 11 billion cubic meters of gas from RUE by Naftogaz Ukrainy.

Mr Astapov said "We believe that taking into account the agreement on the Energy Charter which was signed in 1994 there is a high likelihood that the arbitration court will."

He said that this concerns classical legal issues in investment disputes that are whether there was investment according to part three of the agreement, whether the petitioner is an investor, whether there actually was expropriation according to the interpretation of the notion in the agreement, and whether actions characterized as expropriation could be attributed to Ukraine.

Mr Astapov said that the present situation is an investment dispute, in which the state of Ukraine is on one side. In particular, Article 26 of the said agreement foresees a mechanism for settling disputes between investors and the state. He said that "The notions of 'investor' and 'investment' are interpreted widely and cover activities on energy transit and transportation."

Mr Astapov said that the fact that Centragas owns 50% of RUE gives it the right to make a claim against Ukraine. He said that the petitioner has a number of alternatives regarding the settling of the dispute: It can submit the case to the Stockholm arbitration, ICSID arbitration in Washington or have it heard by ad hoc arbitration under Uncitral rules.

He added that "At present 15 investment disputes are being heard on the basis of the said agreement on the Energy Charter."

(Sourced from http://www.interfax.com.ua)