27th Aug 2025 11:22
(Alliance News) - Enwell Energy PLC on Wednesday said it has started legal action against Ukraine after failing to resolve a dispute amicably.
The Ukraine-focused oil and gas exploration and production company said it has commenced arbitration proceedings under the agreement between the UK and Ukraine for the promotion and reciprocal protection of investments.
The agreement is an international treaty designed to protect the rights of investors from the UK or Ukraine who make investments in the other country.
The proceedings follows a series of adverse actions taken by Ukraine against Enwell and its subsidiaries in Ukraine since December 2022.
These include interfering with the ownership registrations for its subsidiaries and assets, freezing of certain assets, raids and searches of the local offices and field premises, and, suspension of the group's gas and condensate production and exploration licences.
During May 2023 to June 2024, the Vasyschevskoye production licence and Svystunivsko-Chervonolutskyi exploration licence were the subject of suspension orders. Since November 2024, the Mekhediviska-Golotvshinska, Svyrydivske and VAS production licences have been the subject of further suspension orders.
Enwell said it had sought to resolve the disputes with Ukraine "amicably", but these efforts have not been successful.
It considers that by its actions, Ukraine has contravened its obligations and the company's rights under the treaty.
Within the arbitration proceedings, Enwell is claiming monetary damages for the loss and damage it has suffered as a result of Ukraine's actions, as well as the reinstatement of its licences for the remainder of their respective durations, and its costs.
Shares in Enwell Energy were down 2.6% at 19.00 pence each in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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