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British oil and gas company JKX has decided to sue the Kiev

 Британская нефтегазовая компания JKX решила судиться с Киевом

The new head of British oil company JKX Oil & Gas Plc Tom reed is going to file a claim in the amount of 270 million dollars to the government of Ukraine for the sum paid by a company tax on production was too high, according to Financial Times.

“We would like to end the conflict with the government of Ukraine as soon as possible”, – RIA “news” the statement of the reed with reference to the publication.

While Reid noted that his main task is the early completion of this case, even if I have to make some concessions, because this situation is distracting the company from their main task – the production of oil and gas.

According to a source close to the company, the company will spend about $ 2 million a year on legal fees at the Hague, therefore, the Board of Directors supports the decision to make concessions, it does not elaborate on what percentage will be reduced by the amount of the claim.

The second problem is that even if the company wins the lawsuit, it would be very difficult to receive timely payments from the Ukrainian government, which in connection with crisis situation in the country has no money. Another source of the newspaper noted that in this case, the payment may be replaced by tax credits from the government.

In mid-February 2015 JKX has initiated arbitration proceedings against the Ukrainian government, accusing him of violating the Energy Charter Treaty and bilateral agreements on protection of investments, concluded with great Britain and the Netherlands. The company seeks compensation for losses it sustained due to the violation of Ukraine’s Treaty obligations, including the failure of Ukraine to ensure “fair and equitable” conditions for investment in JKX. In particular, JKX is seeking compensation for rental payments for the sum about 180 million dollars that the company paid for the opportunity to produce oil and gas in the country since 2011.

As we reported earlier, the Russian Ministry of Finance 17 February, filed a lawsuit against Ukraine in London’s High court in order to recover the debt under the bonds of Ukraine total volume 3,075 billion US dollars.

The Ukrainian side insisted that Russia had accepted the same terms as trade creditors (who agreed to the restructuring). Kiev motivated by the desire to supposedly put the creditors in equal conditions. However, the international monetary Fund has officially confirmed that the debt of Ukraine to Russia is the sovereign, not commercial, in other words, has a fundamentally different status.

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