16th Feb 2015 09:19
LONDON (Alliance News) - JKX Oil & Gas PLC on Monday said it has started arbitration proceedings against Ukraine under the Energy Charter Treaty, a bilaterial investment treaty, to seek compensation for what JKX called Ukraine's violation of the treaty.
JKX said it is seeking compensation from Ukraine over the country's alleged violation of the treaty, including its failure to treat JKX investments in a "fair and equitable" manner and failing to comply with commitments the country made with regard to JKX's investments in the country.
The company said it is, in particular, seeking the repayment of more than USD180 million in rental fees paid by its Ukrainian subsidiary on the production of oil and gas in the country since 2011.
An Emergency Arbitrator appointed under the Arbitration Rules of the Stockholm Chamber of Commerce has already issued an Emergency Award, JKX said, ordering Ukraine to refrain from imposing royalties on production from JKX's Ukrainian subsidiary in excess of a 28% rate, as opposed to the 55% charge required under Ukrainian law.
Shares in JKX were up 4.9% to 31.47 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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