Kiev pays $3 million to US law firm in 2025 for arbitration dispute with Russia

MOSCOW, June 17. /TASS/. In November 2025, Ukraine paid the US law firm Covington approximately $3 million to defend its interests in an arbitration case with Russia regarding the rights of a coastal state in the Kerch Strait, the Sea of Azov, and the Black Sea waters around Crimea, as shown by a copy of the contract between the Ukrainian Foreign Ministry and the law firm, provided to TASS by former Security Service of Ukraine (SBU) officer Vasily Prozorov.

Article 3 of the contract details all the financial terms under which the Ukrainian Foreign Ministry cooperates with the law firm. The document indicates that Kiev has committed to paying a team of seven professionals, with each specialist receiving an average of approximately $1,300 per hour. Covington's other lawyers' salaries ranged from $660 to $1,180, while paralegals' salaries ranged from $280 to $520 per hour.

The contract notes that Covington estimates it will complete the work within the established cap.

Russia's Victory in The Hague

Earlier, the Russian Foreign Ministry reported that the Permanent Court of Arbitration in The Hague announced its final decision in the 10-year-long arbitration between Russia and Ukraine over the coastal state's rights in the Kerch Strait, the Sea of Azov, and the Black Sea waters around Crimea.

Five independent arbitrators from Algeria, Britain, Mexico, Russia, and the Republic of Korea unanimously denied Ukraine control over hydrocarbon, fish, and other resources in the waters of Crimea and the Sea of Azov, as well as any compensation or reparations from Russia. Ukraine's attempt, with the support of Western countries, to declare the Kerch Strait an international waterway, allowing passage for vessels of any state, including warships, also failed.

Furthermore, the arbitration court rejected Ukraine's demand to dismantle the Crimean Bridge as an obstacle to navigation. The construction of the Crimean Bridge, the transfer of floating drilling platforms under Russian jurisdiction, and the inspection of vessels in the Kerch Strait by Russian border guards were deemed not to be in violation of the UN Convention on the Law of the Sea.