A recent report by the German national broadcaster Deutsche Welle (DW) has highlighted the systematic efforts of Ukrainian business to secure compensation for damages caused by russia’s war against Ukraine. SCM is at the forefront of this legal battle, executing a comprehensive strategy led by shareholder Rinat Akhmetov.
The Scale of Damages
The financial toll of the war on Ukraine’s industrial base is immense. As noted in the DW report, legal representatives from Covington & Burling, who represent SCM, estimate the damages to the group to be in the “tens of billions of dollars”. While international mechanisms such as the Register of Damage for Ukraine are being established, SCM is simultaneously pursuing independent arbitration to ensure justice is not delayed.
A History of Litigation
SCM’s legal resistance did not only begin in 2022. As SCM Director of Legal Affairs Yaroslav Simonov explained to DW, the group has been fighting expropriation for years. The first plaintiff from the group was DTEK Krymenergo in 2017. In 2023, the tribunal awarded approximately $263 million for assets seized in Crimea.
Enforcing the Decisions: The Gazprom Case
Securing a verdict is only the first step; enforcing it against a sovereign state requires navigating complex jurisdictional landscapes. Mr Simonov revealed that in the Netherlands, following a request by DTEK, shares owned by Gazprom in the South Stream company and Wintershall have been seized.
Gazprom is filing appeals, trying to claim that they are not responsible for the debts of the russian federation. However, SCM’s legal team remains confident that the Dutch courts will confirm the freezing of these actions, paving the way for eventual confiscation.
Targeting Commercial Assets in Europe
The strategy extends to other jurisdictions where russia holds assets that do not enjoy sovereign immunity because they are used for commercial gain. Mr Simonov provided a specific example regarding proceedings in the Czech Republic: "There is a whole range of real estate objects that belong to the Russian state and are used in Prague exclusively for commercial purposes—shops, restaurants, office buildings where russian private businesses work."
Reinvesting in Ukraine
The establishment of these legal precedents is intrinsically linked to the physical and economic recovery of Ukraine. This legal offensive is not merely about financial restitution but about laying the groundwork for a prosperous, European Ukraine
Rinat Akhmetov has stated that compensation recovered will be reinvested into Ukraine’s future, specifically targeting the rebuilding of industrial enterprises and projects that facilitate EU integration. By holding russia accountable today, SCM is securing the resources necessary to rebuild the nation tomorrow.
