Ilyashev & Partners has announced that, on May 27, 2016, the European Court of Human Rights (ECHR) accepted for consideration the complaint the firm drafted for its client, the OJSC Feodosia Shipbuilding Company “Morye” (“FSC Morye”), on the purported violation of its rights resulting from what the firm calls the "illegal nationalization of [the company’s] property in the Crimea."
FSC Morye specialized in military and civil shipbuilding, in particular, the creation of military and civilian boats, hydrofoils from light alloys, and hovercraft. A significant part of its products consisted of warships and multipurpose boats. The State of Ukraine possessed (and still claims) a 100% stake in FSC Morye. In 2004, Ukraine’s Cabinet of Ministers included FSC Morye in the list of companies that had strategic importance for the economy and security of Ukraine, and in 2012 FSC Morye was included in the list of state’s enterprises which were transferred to Ukroboronprom State Concern.
In 2014, according to I&P, the State Council of the Crimea transferred ownership of all movable and immovable property of FSC Morye located on the peninsula to itself. Later, upon the order of Chairman of the Russian Federation Government, FSC Morye was then transferred to the Russian federal property.
Thus, according to I&P, "the Court will actually for the first time consider the legitimacy of interference with the ownership right to the assets of FSC Morye by the self-proclaimed authorities of the Crimea without compensation of their value and violation of the company’s right to a fair trial.”
“It is obvious that such arbitrary decisions of the body acting now under the jurisdiction of the Russian Federation violates the property rights of the company envisaged in Article 1 of Protocol No. 1 to the Convention for the Protection of Human Rights and Fundamental Freedoms”, says Ilyashev & Patners lawyer Oleksandr Dementiev, who co-authored the application to the ECHR.
“The company made every effort to appeal against the decisions of the Crimean authorities in the courts of the Russian Federation, however, the proceedings (quite predictably) had no effect," stated Roman Marchenko, Senior Partner at Ilyashev & Partners, Morye's asset manager. "In such circumstances the company had no choice but to complain to the European Court of Justice about the violation of its right to a fair trial guaranteed by Article 6 of the Convention. At this stage, the 'field of battle' for the state property confiscated in the Crimea moved to Strasbourg."
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