DC Circuit Denies Russia’s Efforts to Delay Enforcement of Arbitration Award for Ukrainian Gas Companies

Highlights

The U.S. Court of Appeals for the DC Circuit denied Russia’s effort to delay enforcement of a $34 million arbitral award in favor of 11 Ukrainian gas companies led by Stabil LLC.
The court rejected Russia’s motion to stay issuance of the Court’s mandate while the U.S. Supreme Court considers the country’s petition for certiorari.

Hughes Hubbard successfully defeated an effort by the Russian Federation to delay enforcement proceedings of a $34 million arbitral award on behalf of a group of 11 Ukrainian petrol companies led by Stabil LLC.

In a one-paragraph order issued on April 7, the U.S. Court of Appeals for the District of Columbia Circuit denied without explanation Russia’s motion to stay issuance of the court’s mandate while the U.S. Supreme Court decides whether to grant the country’s pending petition for a writ of certiorari.

Ahead of the order, the firm argued in a brief to the DC Circuit that Russia’s Supreme Court petition raises no substantial question and that a genuine circuit split doesn’t exist.

On Feb. 13, the DC Circuit affirmed the District Court’s decision that the District Court had jurisdiction to enforce the $34 million award against Russia.

The Ukrainian companies, which owned and operated chains of gas stations that were seized by Russia after its 2014 invasion of Crimea, have been fighting for compensation since 2015. They have prevailed at the jurisdiction and merits stages before an international arbitration tribunal and the Swiss Federal Supreme Court and are now seeking enforcement of the resulting final award.

Law360 reported on the DC Circuit’s ruling.

The Hughes Hubbard team representing Stabil and the other Ukrainian gas companies includes John Townsend, Eleanor Erney, Shayda Vance, Carter Rosekrans and Winthrop Jordan.