Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Analytical reference note Ukraine’s economic losses due to the temporary occupation of the Autonomous Republic of Crimea and the city of Sevastopol by the Russian Federation

CONTENTS

Preface

Total losses and the government’s efforts to assess them

Conclusions and recommendations

Losses by industry Budget losses GDP Exports Loss of control over state-owned legal entities State-owned entities that were not added to authorized capitals of business partnerships but remained on their balance sheets Lost rent for leased state property Illegal nationalization of property Lost Ukrainian Navy assets Losses of Chornomornaftogaz and Ukrtransgaz Transportation Fishing ports Losses in agriculture Water infrastructure and water resources Banks TV and radio broadcasting Markets Nature Reserve Fund and the environment Tourism and recreation Cultural and historical landmarks Museums Research institutions and universities

State-owned economic entities located in the temporarily occupied territory of the Autonomous Republic of Crimea and the city of Sevastopol

Private companies that relocated from the Autonomous Republic of Crimea and Sevastopol to other parts of Ukraine as a result of Russia’s temporary occupation of the Crimean peninsula and continued their operation

Potential losses due to violated rights of Ukrainian citizens to their land

Efforts of the national law enforcement and judicial systems

International courts Permanent Court of Arbitration (The Hague) International Court of Justice (The Hague) Arbitral Tribunal constituted under Annex VII to the 1982 United Nations Convention on the Law of the Sea (The Hague) International Court of Arbitration of the International Chamber of Commerce (Paris) International Tribunal for the Law of the Sea (Hamburg) International Criminal Court

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Preface This Reference Note’s methodology is based on two key principles: general differentiation between direct and indirect economic losses as well as their breakdown into losses for Ukraine and those for the Autonomous Republic of Crimea (ARC) and Sevastopol, brought about by the temporary occupation of the Crimean peninsula as a result of Russia’s military aggression against Ukraine. These categories of losses are, of course, dialectically linked, but in many cases have no direct correlation. Direct losses include: loss of economic assets; losses resulting from the so-called “nationalization” of a number of legal entities and business entities of various forms of ownership; lost profits; losses from reduced turnover; lost budget revenue; loss of transportation infrastructure, etc. Indirect losses include, among other things: a general reduction of Ukraine’s scientific, cultural and tourism potential as a result of the temporary occupation of the Crimean peninsula; the need to restructure Ukraine’s industrial and agroindustrial sectors due to the temporary occupation and loss of control over the resources, enterprises and economic assets of the Crimean peninsula, as well as the need for the national economy to adapt to new conditions; economic losses from unlawful restrictions placed by the occupying power on commercial shipping in the Kerch Strait and the Sea of Azov (i.e. the decline of the Mariupol and Berdyansk seaports), etc. It is also important to keep in mind that a number of both direct and indirect losses are irreversible (e.g. the destruction of cultural heritage sites; exploitation of natural resources and mineral deposits by the occupying power; damage to the environment; demographic losses resulting from gross human rights violations, war crimes and crimes against humanity, etc.). Russia’s temporary occupation of the Crimean peninsula deprived Ukraine of important economic assets as well as significantly impacted its geopolitical position and transportation infrastructure. For the ARC and Sevastopol, the temporary occupation brought a reduction of agricultural land, decline of entire branches of agriculture, including rice cultivation, viticulture, as well as a decrease in livestock industries. The temporary occupation and Crimea’s “gray zone” status, as well as sanctions, make it impossible for the region to conduct foreign trade normally. With Crimea being essentially turned into a military outpost by the occupying power as well as its de facto isolation on the international level, tourism has suffered greatly there. Illegal “nationalization” of property and what essentially were raiding seizures of a number of economic entities by the occupying power, as well as the increasing centralization, bureaucratization and statism of the economy are hindering the growth of the private sector. The region has lost all its appeal to investors. As a result, Crimea's need for subsidies has increased dramatically compared to the period prior to 2014. For the population of the ARC and Sevastopol, the cost of the market basket, mobile communications and telecommunications services has gone up while the quality of these services has decreased. This Reference Note deals with Ukraine’s losses resulting from the temporary occupation of the ARC and Sevastopol by Russia. The issue of economic losses suffered by the ARC and Sevastopol as a result of Russia’s military aggression and temporary occupation requires a separate study.

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future This Reference Note makes use of the information obtained as a result of previous work by the Ministry of Justice of Ukraine, Ministry of Economic Development, Trade and Agriculture of Ukraine, State Property Fund of Ukraine, Ministry of Information Policy (currently Ministry of Culture and Information Policy) of Ukraine, National Council of Television and Radio Broadcasting of Ukraine, National Institute for Strategic Studies, as well non-governmental organizations (Ukrainian Center for Independent Political Research, Maidan of Foreign Affairs and Ukrainian Helsinki Human Rights Union). This Reference Note is not meant to be empirically and factually exhaustive, but it does provide sufficient information to appreciate the scale of losses suffered by Ukraine as a result of Crimea’s temporary occupation by Russia, to see major trends in these processes, to isolate main problems, as well as to outline the steps that the government should take to protect its economic assets or obtain appropriate compensation.

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Total losses and the government’s efforts to assess them

In 2014, the government instructed the Ministry of Justice and the State Property Fund to develop a methodology for assessing losses resulting from the temporary occupation of Crimea and to calculate the cost of lost state property. Preliminary estimates of the Justice Ministry’s Interdepartmental Working Group on Damages put the state’s total losses in 2014 caused by the temporary occupation of the ARC and Sevastopol at UAH 1 trillion 200 billion. However, this figure does not account for potential profits that could have been earned by using objects and property located on the Crimean peninsula, or the cost of mineral deposits, in particular those located along the sea shelf1. Some experts estimate Ukraine’s total losses at UAH 2.4 trillion2. Paragraph 9 of the Recommendations of the Parliamentary Hearings “Strategy for the Reintegration of the Temporarily Occupied Territory of the Autonomous Republic of Crimea and the City of Sevastopol into Ukraine: Problems, Solutions, Methods and Approaches” (June 15, 2016) adopted by the Parliament Resolution No. 1602-VIII of September 22, 2016 contains a recommendation for the Cabinet of Ministers of Ukraine (CMU) to develop, together with international experts, including leading audit companies, a methodology for assessing damages caused to the state and citizens of Ukraine as well as to legal entities based within Ukrainian jurisdiction, as a result of the temporary occupation of the ARC and Sevastopol. The CMU was also to prepare appropriate responses should Russia attempt to challenge Ukraine’s actions in international courts. None of this has been implemented so far3.

1 Letter of the National Institute for Strategic Studies No. 293/446 of May 19, 2020 (reply to inquiry No. 449/01-09-20 of May 13, 2020 of the Office of the Permanent Representative). 2 Ukraine to double the amount of losses from the annexation of Crimea - Link: https://krymsos.com/news/ukrayina- zbilshit-sumu-zbitkiv-za-aneksiyu-krimu-vdvichi/ 3 Ukrainian Parliament Resolution No. 1602-VIII of September 22, 2016 - Link: https://zakon.rada.gov.ua/laws/show/1602-19#Text

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Conclusions and recommendations

As a result of Russia’s temporary occupation of the ARC and Sevastopol, Ukraine’s budget system lost 326 local budgets. Total funds in the local budgets of the ARC as of January 1, 2014 amounted to UAH 9.0 billion. As of January 1, 2014, there were (were registered) 1,059 legal entities (state enterprises, institutions and organizations) and 33 joint stock companies with a state share in their authorized capital in the temporarily occupied territory (TOT) of the ARC and Sevastopol. As of January 1, 2014, there were 1,482 state-owned objects in the TOT of the ARC and Sevastopol that were not included in the authorized capital of business partnerships as a result of the privatization process, their residual value amounting to UAH 51,573.96 thousand. By the most reserved estimates of privatization authorities as part of their efforts to ensure the state’s property rights, in 2014-2019 the state did not receive UAH 470.9 million of rent under lease agreements on state property located in the TOT of the ARC and Sevastopol. The TOT of the ARC and Sevastopol holds 169 state-owned economic entities belonging to the jurisdiction of various Ukrainian government agencies and other state institutions. Based on available information, the most reserved estimates put Ukraine’s economic and financial losses resulting from the loss of control over these 169 state-owned economic entities at about 15 thousand jobs, UAH 3,778,067 thousand of assets and UAH 1,856,723 thousand of net income from sales. It should be noted, however, that these figures do not give the full picture: 1. the only information on the financial and economic activities of these entities available is in relation to 2013; 2. for a large number of these entities, no information is available about their assets and business performance; 3. no information is available about the lost profits from the activities of these entities as well on the estimated loss of revenue to Ukraine’s state budget in 2014-2019 (it is necessary to apply appropriate research and methodological instruments here); 4. available information does not account for fluctuations of currency exchange rates throughout 2013-2019. Ukrainian Navy lost about UAH 1.5 billion worth of assets in Crimea. A significant loss of assets resulted from Russia’s takeover of the Ukrainian state companies Chornomornaftogaz and Ukrtransgaz, as well as 17 deposits along the Black Sea shelf, including 11 gas fields, 4 gas condensate fields and 2 oil fields. Ukraine’s transportation sector lost 645 km of railways, 6,265 km of roads, and 5 trade sea ports - Feodosia, Sevastopol, Yevpatoria, Yalta and Kerch, resulting in the loss of about 10% of the total volume of transshipment and about 3-5% of the total rail freight. According to the Ministry of Agrarian Policy and Food of Ukraine (currently Ministry of Economic Development, Trade and Agriculture of Ukraine), Ukraine lost UAH 201.6 billion worth of assets in agriculture. There are 20 water management organizations belonging to the State Agency of Water Resources of Ukraine in the TOT of the ARC and Sevastopol. The total value of the state property (non-current assets) of these organizations illegally “nationalized” by Russia is UAH 2,021.6 million.

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future There are 69 objects of the North Crimean Canal Department in the TOT of the ARC, with a total value of UAH 229.6 million. The temporarily occupied peninsula holds almost 150 km of the North Crimean Canal (its total length is 293 km). Crimea’s water resources average at 910 million m³ per year, decreasing to 430 million m³ in particularly dry years. Groundwater reserves are estimated at 445.5 million m³ per year. 503 radio frequencies that were in use by licensees of Ukraine’s National Council on Television and Radio Broadcasting have been taken over by Russia in the TOT of Crimea. There were 1,022 offices of Ukrainian banks, 11 branches, 53 representative offices and 2 banks in Crimea. The total assets of these banks exceeded UAH 22 billion, UAH 16 billion of which were bank loans. In total, prior to the temporary occupation there were 97,588 private businesses in Crimea, 20,516 of which were legal entities and 77,072 were sole proprietorships. According to the Ministry of Justice of Ukraine, 1,163 legal entities (826 from the ARC and 337 from Sevastopol) as well as 1,338 sole proprietorships (1,047 from the ARC and 291 from Sevastopol) changed their location (place of registration) after February 20, 2014 from the ARC or Sevastopol to other regions of Ukraine and have continued their operation. 2,501 private businesses have undergone re-registration. In terms of percentages, only 2.56% of businesses (including 5.67% of legal entities and 1.74% of sole proprietorships) have undergone re-registration. No accurate statistics are currently available in regards to the number of private legal entities and sole proprietorships that are still de facto operating in the TOT of the ARC and Sevastopol (the same can be said about statistics on closed businesses). This is due to a number of factors, namely: 1. some businesses either failed to undergo re-registration in accordance with the legislation of the occupying administration or failed to do so in time, or did it later, without notifying Ukrainian tax authorities about the termination of their activities; 2. some businesses have dual registration: under Russian and Ukrainian legislation; 3. Ukraine’s system of records for economic entities is methodologically and legally different from that employed by Russia’s occupying administration, there is no correlation between them. As of January 1, 2014, the Nature Reserve Fund (NRF) of the ARC and Sevastopol included 197 zones and objects with a total area of 220,009.3 hectares (actual area: 219,319.3 hectares). As of January 1, 2014, there were 517 km of beaches, 14 mud baths, over 100 mineral water springs and 160 caves on the territory of the Crimean peninsula. Ukraine also lost the entire recreational complex of Crimea - over 600 spa hotels and health centers. The State Register of Immovable Landmarks of Ukraine lists 1,112 landmarks of local significance (1,080 in the ARC and 32 in Sevastopol) and 86 landmarks of national significance (63 in the ARC and 23 in Sevastopol) located in the ARC and Sevastopol. As of January 1, 2014, there were 35 museums in the ARC and 5 museums in Sevastopol. About 100 institutes, organizations and universities in Crimea were working in various research fields. By the minimum estimates of the Interdepartmental Working Group on Damages of Ukraine’s Ministry of Justice, Ukraine’s total losses in 2014 caused by the temporary occupation of the ARC and Sevastopol amounted to UAH 1 trillion 200 billion. However, this figure does not take into account lost benefits from the use of objects and property located on

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future the Crimean peninsula, or the cost of mineral resources, in particular those located along the sea shelf.

The task of calculating Ukraine’s economic losses sustained as a result of the temporary occupation of the ARC and Sevastopol by Russia should be considered in two dimensions: tactical and strategic. Tactical dimension: a) legislative regulation and development of a systemic practice for documenting facts, including within the framework of the pre-trial investigations, in regards to economic and property losses sustained as a result of the temporary occupation of the ARC and Sevastopol; b) systematization and provision of evidence for existing proceedings in international judicial institutions with the purpose of recovering illegally seized assets and collecting compensation; c) interdepartmental coordination and initiation of new applications in domestic and international courts as part of the existing strategy for the legal protection of national interests (improving said strategy by taking into account the need to protect economic assets lost as a result of the temporary occupation of the ARC and Sevastopol); d) interdepartmental coordination between state bodies in the legal protection of individuals and private businesses that lost their assets as a result of the temporary occupation of the Crimean peninsula and that have filed lawsuits against Russia with the European Court of Human Rights and other international judicial institutions; e) systemic efforts aimed at seizing assets and implementing other restrictive measures (sanctions) against legal entities and individuals involved in illegal seizures and the so-called “nationalization” of Ukrainian economic assets and property in the TOT of the ARC and Sevastopol. Strategic dimension: a) accumulating evidence to lay the groundwork for Ukraine’s consolidated claim against Russia, in order to bring it to justice under international law for the military aggression against Ukraine and to claim reparations; b) development of an action plan and measures for implementing it, in order to minimize negative consequences from economic and property losses/losses resulting from Crimea’s temporary occupation - both for the state and for the people. Systemic implementation of such measures; c) taking into account losses incurred as a result of the temporary occupation of the Crimean peninsula as well as ways to minimize their negative consequences when developing the State Strategy for Deoccupation and Reintegration of the Temporarily Occupied Territory of Ukraine in the Autonomous Republic of Crimea and Sevastopol. In light of the above, it is necessary to implement the following measures: Recommendation Responsible authorities4 1. Develop or refine procedures and Ministry of Economy; State Audit methodologies for calculating the following losses: Service; Ministry of Justice; Office of the Prosecutor General; a) loss of profits from the activities of economic National Academy of Sciences; entities located in the TOT of the ARC and Sevastopol; National Institute for Strategic Studies; Chamber of Commerce

4 This list is not exhaustive or final.

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

b) loss of revenue to the state budget of Ukraine from and Industry economic entities located on the TOT in 2014-2019; Ministry of Finance; State Tax Service; State Treasury Service; c) losses incurred due to the deprivation of the Accounting Chamber; Ministry of residents of the TOT of the ARC and Sevastopol of Justice; Office of the Prosecutor their right to use and dispose of their property, General; National Academy of violations of their property rights; Sciences

State Property Fund; State Service d) losses resulting from damage caused to the for Geodesy, Cartography and environment and the NRF, as well as from the illegal Cadastre (State Geocadastre); use of subsoil and natural resources in the TOT of the Ministry of Economy; Ministry of Crimean peninsula and along the coastline. Justice; Office of the Prosecutor General; Prosecutor's Office of the ARC; Parliament Commissioner for Human Rights

Ministry of Ecology and Natural Resources; State Environmental Inspectorate; State Service of Geology and Subsoil; State Agency of Water Resources; Ministry of Internal Affairs; Ministry of Justice; Office of the Prosecutor General; National Academy of Sciences 2. Address the need to adopt procedures Parliament Committee on and methods specified in Recommendation 1 at the Economic Development; legislative level. Due to the absence of both the Parliament Committee on Finance, procedures and methodologies for calculating Tax and Customs Policy; damages as well as of the legal basis for their use, the Parliament Committee on state is unable to take effective measures to defend its Environmental Policy and Nature interests in court. In order to address this problem, it Management; Parliament seems appropriate to amend current legislation (for Committee on Law Enforcement; instance, by adopting draft law of Ukraine No. 3576 Parliament Committee on Human of June 2, 2020 “On Amendments to Certain Rights, Deoccupation and Legislative Acts of Ukraine on Enhancing Reintegration of the Temporarily Responsibility for Illegal Mining”5 as well as the draft Occupied Territories in Donetsk, order of the Ministry of Ecology and Natural Luhansk Oblasts and the Resources of Ukraine "On Adopting the Methodology Autonomous Republic of Crimea, for Calculating Damages Incurred by the State as a the City of Sevastopol, National Result of Unauthorized Use of Subsoil". Minorities and Inter-ethnic Relations; Ministry of Justice; Ministry for Reintegration of the

5 Draft law of Ukraine No. 3576 of June 2, 2020 “On Amendments to Certain Legislative Acts of Ukraine on Enhancing Responsibility for Illegal Mining” - Link: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=69003

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Temporarily Occupied Territories

3. Establish an interdepartmental working Office of the Prosecutor General; group comprising representatives of the Office of the authorized bodies of central Prosecutor General and the Ministry of Defense and executive authorities tasked with documenting property destroyed or seized in the course of the conflict in the TOT of the ARC and Sevastopol as well as in certain areas of Donetsk and Luhansk oblasts. Involve, given the nature of the international armed conflict in the TOT of the ARC and Sevastopol, representatives of other public authorities in the working group’s activities. Have public authorities that own economic entities and/or property in the TOT of the Crimean peninsula, in accordance with their respective jurisdictions, assess their losses and damages incurred as a result of Russia’s military aggression.

4. Develop effective interdepartmental Authorized bodies of central coordination, including within the framework of the executive authorities; National Interdepartmental Commission on Generalizing the Bank of Ukraine; State Property State’s Legal Position on Repelling and Deterring the Fund; National Security and Military Aggression of the Russian Federation and Defense Council; Office of the Preparing Ukraine’s Consolidated Claim against the Prosecutor General; Security Russian Federation to Hold It Accountable under Service of Ukraine; Parliament International Law for Its Military Aggression against Commissioner for Human Rights; Ukraine6. Parliament Committee on Law Enforcement; Parliament Develop litigation strategies for proceedings in Committee on Legal Policy; domestic and international courts with the aim of Parliament Committee on National protecting and recovering economic assets/property of Security, Defense and individuals, legal entities, the state and trade unions Reconnaissance; Parliament that were illegally seized and/or destroyed in the Committee on Human Rights, course of Russia’s military aggression and temporary Deoccupation and Reintegration of occupation of the Crimean peninsula, and/or collecting the Temporarily Occupied compensation of their value, including lost Territories in Donetsk, Luhansk profits/losses incurred due to the inability to use and Oblasts and the Autonomous dispose of said assets/property. Republic of Crimea, the City of Sevastopol, National Minorities and Inter-ethnic Relations; Office of the President of Ukraine; Office of the Permanent Representative of the President of Ukraine in the

6 CMU Resolution No. 1059 of December 12, 2018 “On Establishing the Interdepartmental Commission on Generalizing the State’s Legal Position on Repelling and Deterring the Military Aggression of the Russian Federation and Preparing Ukraine’s Consolidated Claim against the Russian Federation to Hold It Accountable under International Law for Its Military Aggression against Ukraine” - Link: https://zakon.rada.gov.ua/laws/show/1059-2018-п#Text

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

ARC 5. Have this Reference Note and Office of the Permanent recommendations of the Office of the Permanent Representative of the President of Representative as well as other issues related to the Ukraine in the ARC; Ministry for protection of economic assets lost by Ukraine as a Reintegration of the Temporarily result of Russia’s military aggression in the TOT of the Occupied Territories Crimean peninsula be examined by the Interdepartmental Commission on Generalizing the State’s Legal Position on Repelling and Deterring the Military Aggression of the Russian Federation and Preparing Ukraine’s Consolidated Claim against the Russian Federation to Hold It Accountable under International Law for Its Military Aggression against Ukraine, as well as by the Interdepartmental Working Group on Damages Caused by the Temporary Occupation of Parts of Ukrainian Territory7.

Ensure systematic work of relevant interdepartmental working groups on devising and optimizing ways to address the outlined problems. Vice Prime Minister of Ukraine - Minister for Reintegration of the Temporarily Occupied Territories, Deputy Minister of Justice - Chair of the appropriate interdepartmental working group

6. File inter-state complaints against Russia with international courts, in particular the Ministry of Justice; Ministry of ECtHR, and involve as parties in the proceedings Economy; Ministry of Foreign individuals and private businesses that lost control Affairs over their economic assets/property and suffered losses as a result of the temporary occupation of the Crimean peninsula.

7. Impose national and international CMU, National Bank of Ukraine, economic and other special restrictive measures Security Service of Ukraine, (sanctions) on Russian legal entities (institutions and Parliament, National Security and agencies), as well as individuals involved in the illegal Defense Council “nationalization” of Ukraine’s economic assets and property in the TOT of the ARC and Sevastopol (for instance, against those Russian legal entities that claimed Ukrainian property seized in the course of Russia’s military aggression against Ukraine on the Crimean peninsula).

7 CMU Resolution No. 343 of July 17, 2014 “On Establishing the Interdepartmental Working Group on Damages Caused by the Temporary Occupation of Parts of Ukrainian Territory” - Link: https://zakon.rada.gov.ua/laws/show/343-2014- п#Text

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Refine national legislation and mechanisms in the area of imposing, implementing and monitoring economic and other special restrictive measures (sanctions); bring them closer to international Ministry of Economy; Ministry of standards. Justice; Ministry for Reintegration of the Temporarily Occupied Expand cooperation with international partners in Territories; Office of the relevant areas. Permanent Representative of the President of Ukraine in the ARC; Parliament

Ministry of Foreign Affairs 8. Step up the work of law enforcement agencies and relevant executive bodies on Office of the Prosecutor General; documenting, investigating, obtaining and Ministry of Internal Affairs; implementing relevant decisions of domestic and Security Service of Ukraine; international courts involving compulsory collection Ministry of Justice; Parliament of damages by seizing assets of individuals and legal Committee on Law Enforcement entities involved in illegal seizure and the so-called “nationalization” of economic assets and property in the TOT of the ARC and Sevastopol, both in Ukraine and in Ukraine’s partner states.

Strengthen the institutional capacity of the Department for Supervision of Criminal Proceedings Involving Crimes Committed amidst the Armed Conflict of the Office of the Prosecutor General, as well as relevant regional prosecutor’s offices and Office of the Prosecutor General; investigative bodies. Ministry of Internal Affairs; Security Service of Ukraine

9. Take into account, when implementing the State Strategy for Regional Development 2021- 2027 adopted by CMU Resolution No. 695 of August 5, 20208, the need to:

a) diversify and replace resources and products that were being extracted/produced in the TOT of the Ministry of Economy; Ministry of ARC and Sevastopol and used to be an integral part of Strategic Industries Ukraine’s economy;

8 CMU Resolution No. 695 of August 5, 2020 “On Adopting the State Strategy for Regional Development 2021-2027” - Link: https://www.kmu.gov.ua/npas/pro-zatverdzhennya-derzhavnoyi-strategiyi-regionalnogo-rozvitku-na-20212027- t50820

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

b) improve and develop hospitality industry and tourism potential and infrastructure in southern Ukraine, particularly in Kherson Oblast; Ministry for the Development of Communities and Territories; c) take measures to improve irrigation and Ministry of Infrastructure; State reclamation of land in southern areas of Kherson Agency for Tourism Development; Oblast in view of the cut off water supply to the TOT Kherson Oblast State of the ARC and Sevastopol; Administration

d) encourage businesses to relocate from the TOT of the ARC and Sevastopol to mainland Ukraine by Ministry of Ecology and Natural offering them a grace period. Involve foreign donor Resources; State Agency of Water organizations in this process and establish grant Resources; Ministry of Economy; programs for IDPs from the TOT of the ARC and Ministry of Finance; Kherson Sevastopol to help them start a business in mainland Oblast State Administration Ukraine.

Ministry of Economy; Ministry of Finance; Anti-Monopoly Committee; Vice Prime Minister of Ukraine - Minister for Reintegration of the Temporarily Occupied Territories; Vice Prime Minister for European and Euro- Atlantic Integration of Ukraine 10. Ensure a comprehensive approach and National Security and Defense take into account, when developing the State Strategy Council and all authorized bodies for Deoccupation and Reintegration of the involved in the process Temporarily Occupied Territories of Ukraine in the Autonomous Republic of Crimea and Sevastopol, the issue of economic losses incurred by Ukraine as a result of Russia’s temporary occupation of the Crimean peninsula. 11. Take into account, when developing and Commission on Legal Reform implementing state policy on protecting human rights under the President of Ukraine; amidst the conflict and overcoming its consequences Ministry for Reintegration of the (the principles of transitional justice), among other Temporarily Occupied Territories; things, the need to: Parliament - establish an effective system for keeping records of material losses, as well as a register of losses/damages incurred by Ukrainian citizens as a result of the temporary occupation of parts of Ukrainian territory; - determine principles and procedures for

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

helping rightful owners recover/collect compensation for property that was illegally alienated/destroyed by Russia in the course of the temporary occupation; - provide for accessible procedures for restoring and obtaining documents confirming ownership rights to property in the TOT, as well as procedures for notifying relevant public authorities about forced transactions with real estate conduced in connection with the peninsula’s temporary occupation (transactions involving land, etc.). 12. Ensure a consolidated position of the President of Ukraine; Vice Prime state that any political agreements on compensation of Minister of Ukraine - Minister for economic losses caused by Russia’s temporary Reintegration of the Temporarily occupation of the ARC and Sevastopol in exchange for Occupied Territories; Parliament concessions regarding Crimea’s status will not be entertained.

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Losses by industry

Budget losses. The state budget system lost 326 local budgets: 315 in the ARC (the budget of the ARC, 11 city budgets of republican significance, 3 district budgets in Simferopol, 14 rayon budgets, 5 budgets from cities of rayon significance, 38 township budgets and 243 village budgets) as well as 11 budgets in Sevastopol (city budget, 4 city district budgets, the budget of the city of rayon significance Inkerman, 1 township budget and 4 village budgets). According to the State Treasury Service of Ukraine, the total volume of the general fund of local budgets in the ARC in 2013 was UAH 9.0 billion (including UAH 4.7 billion of the general fund’s revenue (excluding transfers) and UAH 4.3 billion transfers from the state budget), while the volume of the general fund of local budgets in Sevastopol was UAH 1.7 billion (including UAH 1.1 billion revenue of the general fund (excluding transfers) and UAH 0.6 billion transfers from the state budget). Other data suggests that budget losses amounted to UAH 9.8 billion9.

Gross Domestic Product. The share of the ARC and Sevastopol in Ukraine's GDP in 2001-2012 averaged at 3.6-3.7%10.

Exports. In 2013, the ARC and Sevastopol’s share in the country’s exports was USD 904.9 million11. Crimea’s share in Ukraine’s foreign trade turnover was about 1.5-1.6%.

Loss of control over state-owned legal entities. There are about 4,000 enterprises, organizations and institutions in the TOT of the ARC and Sevastopol that are the property of Ukraine (preparation of a list of this property is ongoing)12. According to the State Property Fund of Ukraine (hereinafter - the Fund) and based on the Unified Register of State Property, as of January 1, 2014 the TOT of the ARC and Sevastopol had 1,059 legal entities (state enterprises, institutions and organizations) and 33 business partnerships with state funds in their authorized capital registered there (figures based on the State Register of Corporate Rights)13.

State-owned entities that were not added to authorized capitals of business partnerships but remained on their balance sheets. According to the Fund’s local offices, as of January 1, 2014 the TOT of the ARC and Sevastopol had 1,482 state-owned entities that were not added to the authorized capital of business partnerships in the process of privatization, with a residual value of UAH 51,573.96 thousand (see Annex 1)14.

9 Recommendations of the Parliamentary Hearings “Strategy for the Reintegration of the Temporarily Occupied Territory of the Autonomous Republic of Crimea and the City of Sevastopol into Ukraine: Problems, Solutions, Methods and Approaches” (June 15, 2016). 10 On systemic effects of Crimea’s temporary occupation on the economic sphere - Link: https://niss.gov.ua/doslidzhennya/ekonomika/schodo-sistemnikh-naslidkiv-timchasovoi-okupacii-krimu-v- ekonomichniy-sferi 11 Crimea under Russian occupation - Link: https://www.pravda.com.ua/articles/2020/04/8/7246911/#comments 12 Citizenship, land, “nationalization of property” under conditions of the occupation of Crimea: deficit of rights (analytical report): Ukrainian Center for Independent Political Research: ed. Y. Tyshchenko. K.: Agency Ukraine LLC, 2015. - P. 57. 13 Letter of the State Property Fund of Ukraine No. 10-62-9187 of May 12, 2020 (reply to inquiry No. 366/01-08-20 of April 8, 2020 of the Office of the Permanent Representative). 14 Ibid.

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Lost rent for leased state property. There are almost 900 currently valid lease agreements involving state property located in the TOT of the ARC and Sevastopol. By the lowest estimates of privatization authorities, in 2014-2019 the state did not receive UAH 470.9 million rent under lease agreements involving state property located in the TOT of the ARC and Sevastopol (information on unpaid rent in 2014 is unavailable; it is known, however, that rent in 2014 was paid only for the January-March period and amounted to UAH 10.95 million)15.

Illegal nationalization of property. From the very outset of Crimea’s temporary occupation, Russia’s occupying administration has been conducting “nationalization” of both state and private property on an unprecedented scale. This essentially constitutes expropriation of property. According to various sources, from 300 to more than 500 state- owned enterprises and trade unions have been “nationalized” on the peninsula over the course of the temporary occupation, as well as about 300 private companies16. Some studies suggest that the total number is about 4,00017. The occupying administration can “nationalize” virtually anything under the pretext of “strategic importance”. This happened to Krymkhlib, Krymplast18, Krymenergo19, Ukrtelecom’s Crimea branch20, assets of Kyivstar21, Krymavtotrans, a number of bus stations22 and many other businesses of various forms of ownership. From the point of view of Ukrainian law, all relevant decisions of Russia’s occupying administration are unlawful, insignificant and legally invalid. In its Resolutions "Situation of Human Rights in the Autonomous Republic of Crimea and Sevastopol, Ukraine", the UN General Assembly has repeatedly called on Russia as the occupying power to respect Ukrainian legislation and repeal laws that allow Russia to pursue its policy of confiscating private property in Crimea and that are in violation of international law; the UNGA has also stressed the need to respect the property rights of all former owners whose property has been unlawfully confiscated23.

15 Analysis and sampling of information from the annual reports on the work of the State Property Fund of Ukraine and the progress of privatization of state property 2014-2019 - Link to the reports: http://www.spfu.gov.ua/ua/documents/docs-list/spf-reports.html 16 Crimea: annexed property: ed. Y. Tyshchenko. - К.: Agency Ukraine LLC, 2016. - P. 12; Crimea beyond rules. Thematic review of the human rights situation under occupation. Issue 2. Right to property. UHHRU, RCHR, CHROT. - P. 12. 17 T. Guchakova, A. Klymenko. Socio-economic situation in the occupied Crimea 2014-2018. Issue 2. May 2019. - P. 13. 18 Resolution of the so-called “State Council” of the so-called “Republic of Crimea” No. 204-1/14 of November 12, 2014 “On Amendments to the Resolution of the State Council of the Republic of Crimea No. 2085-6/14 of April 30, 2014 "On the Management of the Property of the Republic of Crimea" ”. - Link: http://crimea.gov.ru/act/12916 19 Resolution of the so-called “State Council” of the so-called “Republic of Crimea” No. 416-1/15 of January 21, 2015 “On Amendments to the Resolution of the State Council of the Republic of Crimea No. 2085-6/14 of April 30, 2014 "On the Management of the Property of the Republic of Crimea" ”. - Link: http://crimea.gov.ru/act/13225 20 Resolution of the so-called “State Council” of the so-called “Republic of Crimea” No. 450-1/15 of February 11, 2015 “On Amendments to the Resolution of the State Council of the Republic of Crimea No. 2085-6/14 of April 30, 2014 "On the Management of the Property of the Republic of Crimea" ”. - Link: http://crimea.gov.ru/act/13274 21 Resolution of the so-called “State Council” of the so-called “Republic of Crimea” No. 501-1/15 of February 27, 2015 “On Amendments to the Resolution of the State Council of the Republic of Crimea No. 2085-6/14 of April 30, 2014 "On the Management of the Property of the Republic of Crimea" ”. - Link: http://crimea.gov.ru/act/13327 22 Resolution of the so-called “State Council” of the so-called “Republic of Crimea” No. 493-1/15 of February 27, 2015 “On Amendments to the Resolution of the State Council of the Republic of Crimea No. 2085-6/14 of April 30, 2014 "On the Management of the Property of the Republic of Crimea" ”. - Link: http://crimea.gov.ru/act/13319 23 UNGA Resolution A/RES/72/190 of December 19, 2017 “Situation of human rights in the Autonomous Republic of Crimea and the city of Sevastopol, Ukraine”. P. 4. - Link: https://undocs.org/ru/A/RES/72/190 ; UNGA Resolution A/RES/73/263 of December 22, 2018 “Situation of human rights in the Autonomous Republic of Crimea and the city of Sevastopol, Ukraine”. P. 5. - Link: https://undocs.org/ru/A/RES/73/263 ; UNGA Resolution A/RES/74/168 of December

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Loss Ukrainian Navy assets. As a result of Russia’s military aggression, Ukrainian Navy lost the bulk of its ships and motorboats that were stationed on the Crimean peninsula. As of July 2020, 4 corvettes, 2 naval minesweepers, 1 large landing craft and 7 auxiliary ships were captured by the Russia’s occupation forces. In addition, 2 unfinished corvettes (95% and 60% readiness) were captured in 2014. The property lost by the Ukrainian Navy in Crimea is worth about UAH 1.5 billion24.

Losses of Chornomornaftogaz and Ukrtransgaz. Significant losses resulted from the takeover of Ukrainian state companies Chornomornaftogaz and Ukrtransgaz by the occupying power, as well as 17 fields of the Black Sea shelf, including 11 gas fields, 4 gas condensate fields and 2 oil fields. According to the Maidan of Foreign Affairs NGO, these fields hold 58.56 billion m³ of natural gas, 1,231 thousand tons of gas condensate and 2,530 thousand tons of oil25. During 2014-2020 Russia, in violation of the 1982 UN Convention on the Law of the Sea, was illegally producing hydrocarbons in the Sea of Azov and the Black Sea near the temporarily occupied Crimean peninsula.

Transportation. This sector of Ukraine's economy lost 645 km of railways, 6,265 km of roads, 5 sea trade ports - Feodosia, Sevastopol, Yevpatoria, Yalta and Kerch, and with them about 10% of the total transshipment volume, as well as about 3-5% of the total rail freight. In addition, Russia’s control over the Kerch Strait and the hostilities in east Ukraine pose a threat to the operation of the Mariupol and Berdyansk ports, which account for up to 12% of Ukraine’s transshipment.

Fishing ports. Significant losses resulted from the loss of the Kerch and Sevastopol fishing ports, and with them of Ukraine’s two largest fishing fleets (up to 70% of Ukraine’s total haul).

Losses in agriculture. According to the Ministry of Agrarian Policy and Food of Ukraine (currently the Ministry of Economic Development, Trade and Agriculture of Ukraine), Ukraine lost UAH 201.6 billion worth of fixed assets26.

Water infrastructure and water resources. There are 20 water management organizations in the TOT of the ARC and Sevastopol belonging to the jurisdiction of Ukraine’s State Agency of Water Resources, namely: the Republican Committee of the Autonomous Republic of Crimea for Water Management Construction and Irrigated Agriculture, 18 budget-funded organizations (15 water management departments, 1 basin department, 1 technical maintenance center, 1 vocational school) and a state enterprise. According to accounting records, the total value of illegally nationalized state property (non- current assets) of the above organizations is UAH 2,021.6 million.

18, 2019 “Situation of human rights in the Autonomous Republic of Crimea and the city of Sevastopol, Ukraine”. P. 6. - Link: https://undocs.org/ru/A/RES/74/168 24 Letter of the National Institute for Strategic Studies No. 293/446 of May 19, 2020 (reply to inquiry No. 449/01-09-20 of May 13, 2020 of the Office of the Permanent Representative). 25 T. Guchakova, A. Klymenko. Socio-economic situation in the occupied Crimea 2014-2018. Issue 2. May 2019. - P. 10. 26 Letter of the National Institute for Strategic Studies No. 293/446 of May 19, 2020 (reply to inquiry No. 449/01-09-20 of May 13, 2020 of the Office of the Permanent Representative).

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future There are 69 objects of the North Crimean Canal Department remaining in the TOT of the ARC and Sevastopol, with a total value of UAH 229.6 million27. This includes, in particular, almost 150 km of the North Crimean Canal (total length - 293 km)28. Water supply to the TOT via this canal has been suspended since 2014, which has also resulted in irrigation water shortages in southern areas of Kherson Oblast. Crimea’s water resources amount to 910 million m³ per year on average, decreasing during dry years to 430 million m³. Groundwater reserves are estimated at 445.5 million m³/year. To control local surface runoff, 1,994 ponds and 15 natural runoff reservoirs were built on the peninsula, with a total useful volume of 470.7 million m³/year. Crimea has 23 reservoirs in total: 15 natural runoff reservoirs and 8 off-channel reservoirs29.

Banking system. Ukraine’s banking system has also suffered significant losses. According to the National Bank of Ukraine, Crimea had 1,022 offices of Ukrainian banks, 11 branches, 53 representative offices and 2 banks. The total assets of these banks exceeded UAH 22 billion, UAH 16 billion of which were loans30. Thus, as of January 1, 2014 there were 337 offices of PJSC CB PrivatBank in the ARC and Sevastopol. At the time of termination of PrivatBank’s activities in Crimea, the total debt of individuals and legal entities on loans amounted to UAH 5.8 billion, and the bank's liabilities on deposits were almost UAH 7.4 billion (data from the May 30, 2014 balance sheet)31.

TV and radio broadcasting. As a result of Crimea’s temporary occupation, Ukraine’s telecommunications infrastructure and equipment belonging to national broadcasters were seized by Russia and have been used to propagate the legislation of Russia’s occupying administration. Russian legal entities have been illegally using Ukraine's radio frequencies. The occupying administration has also introduced requirements for all Crimean media outlets to undergo re-registration while also forbidding foreign nationals to create media outlets in Crimea. Thus, in February 2015 almost all private radio companies in Crimea lost the right to use their frequencies. These rights were subsequently given by Russia’s Federal Service for Supervision of Communications, Information Technology and Mass Media to Russian media companies and newly established broadcasters controlled by the occupying administration. Persecution has also affected the largest Crimean broadcasting companies. In August 2014, Russia’s occupying administration arrested and confiscated all equipment of the Chornomorska media company. The company subsequently ceased broadcasting and eventually relocated to mainland Ukraine. Systematic persecution of media outlets and journalists has also displaced to Kyiv the Crimean Tatar TV channel ATR.

27 Recommendations of the Parliamentary Hearings “Strategy for the Reintegration of the Temporarily Occupied Territory of the Autonomous Republic of Crimea and the City of Sevastopol into Ukraine: Problems, Solutions, Methods and Approaches” (June 15, 2016). 28 The North Crimean Canal is operating normally. - Link: https://www.krymmvh.ru/index.php/novosti/421-severo- krymskij-kanal-rabotaet-v-stabilnom-rezhime 29 Letter of the State Agency of Water Resources of Ukraine No. 3061/3/6/11-20 of May 29, 2020 (reply to inquiry No. 456/01-09-20 of May 13, 2020 of the Office of the Permanent Representative). 30 Letter of the National Institute for Strategic Studies No. 293/446 of May 19, 2020 (reply to inquiry No. 449/01-09-20 of May 13, 2020 of the Office of the Permanent Representative). 31 Letter from the Council for the Protection of Consumers of Financial Services No. 385 of July 26, 2019 (Office of the Permanent Representative, incoming No. 842/01-09-19 of August 7, 2019)

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future As a result of Russia’s military aggression, licensees of Ukraine’s National Council on Television and Radio Broadcasting lost their right to broadcast in the TOT of the ARC: in regards to analog television, 31 TV and radio companies lost rights to use 292 frequencies in 69 settlements; in regards to digital terrestrial television, 28 TV and radio companies lost the right to use 72 frequencies in 18 settlements; in regards to radio broadcasting, 39 TV and radio companies lost the right to use 139 frequencies in 31 settlements. 503 frequencies belonging to Ukraine and used by licensees of the National Council on Television and Radio Broadcasting have been taken over by Russia in Crimea. As of early 2018, total lost profits for the state resulting from the illegal seizure of radio frequencies and the broadcasting network amounted to about UAH 18 million. According to preliminary data, the state telecommunications operator Krym lost over UAH 160 million resulting from the seizure of infrastructure and equipment in the course of Russia’s military aggression in Crimea. Some licensees of the National Council on Television and Radio Broadcasting (radio stations and TV channels) that were operating on the peninsula and that reported their losses at the request of regulatory authorities lost about UAH 60 million (it should be noted, however, that the actual amount of losses suffered by Ukrainian broadcasters is much higher, due, among other things, to the loss of potential profits in 2014- 2019). Losses of TV service providers resulting from the loss of infrastructure are almost UAH 19 million32. In its Resolutions “Situation of Human Rights in the Autonomous Republic of Crimea and the City of Sevastopol, Ukraine”, UNGA has repeatedly condemned the illegal seizure of Ukrainian television and radio frequencies by the occupying power33.

Markets. On September 3, 2014, 28 markets of the ARC that belonged to Krymspozhyvspilka (association of Crimean consumer communities) were “nationalized” and became the property of the so-called Republic of Crimea34.

Nature Reserve Fund and the environment. As of January 1, 2014, the NRF of the ARC and Sevastopol included 197 areas and objects with a total area of 220,009.3 hectares (actual area 219,319.3 hectares)35. Since the beginning of the temporary occupation, a number of negative processes involving objects belonging to Ukraine’s NRF have taken place on the peninsula. This includes the unlawful introduction of Russian legislation in Crimea, the use of NRF objects for military purposes, and the lowering of the status of certain NRF objects. Thus, out of 48 NRF objects of national significance in Crimea, the occupying administration has unlawfully lowered the status of 40; the Cape Martyan Reserve has been liquidated; the Crimean Nature Reserve has been unlawfully transferred to the jurisdiction of the Directorate of the President of the Russian Federation; regular military exercises are held on the grounds of the Opuk

32 Report on violations and losses in the field of television and radio broadcasting on the territory of the Autonomous Republic of Crimea and Sevastopol under occupation in 2014-2017. Ministry of Information Policy of Ukraine, National Council of Ukraine on Television and Radio Broadcasting. K., 2018. - P. 6-13. 33 UNGA Resolution A/RES/73/263 of December 22, 2018 “Situation of human rights in the Autonomous Republic of Crimea and the city of Sevastopol, Ukraine”. P. 4. - Link: https://undocs.org/ru/A/RES/73/263 ; UNGA Resolution A/RES/74/168 of December 18, 2019 “Situation of human rights in the Autonomous Republic of Crimea and the city of Sevastopol, Ukraine”. P. 5. - Link: https://undocs.org/ru/A/RES/74/168 34 Citizenship, land, “nationalization of property” under conditions of the occupation of Crimea: deficit of rights (analytical report). - P. 59. 35 Recommendations of the Parliamentary Hearings “Strategy for the Reintegration of the Temporarily Occupied Territory of the Autonomous Republic of Crimea and the City of Sevastopol into Ukraine: Problems, Solutions, Methods and Approaches” (June 15, 2016).

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Nature Reserve; coastal missile systems Bal have been deployed on the territory of the National Nature Park Charming Harbor, etc. Irreparable damage to the environment in Crimea is being caused by the permanent militarization of the Azov-Black Sea region by the occupying power, illegal construction of large infrastructure facilities (the so-called Kerch Bridge, the Tavryda highway), illegal use of subsoil and natural resources, large-scale groundwater extraction as well as the activities of the chemical industry36. In 2017, at the request of Ukraine’s Ministry of Ecology and Natural Resources (currently Ministry of Environmental Protection and Natural Resources of Ukraine), the OSCE Project Coordinator in Ukraine implemented, with the support of the governments of Canada and Austria, a project on assessing environmental damage caused by the hostilities in Ukraine. As part of this work, secondary research was conducted regarding Ukraine’s environmental problems stemming from the armed conflict, along with some field work, and an information system on the environment in Donbas was developed. Based on this work, priorities were formulated for environmental restoration in east Ukraine37. In order to facilitate the preparation of claims against the occupying power and to collect compensation for the damage done to the environment, it is necessary to conduct a similar study regarding the TOT of the Crimean peninsula. It is also necessary to develop and adopt procedures and methodologies for calculating damage done to the environment and the NRF, as well as damage caused by the illegal use of subsoil and natural resources in the TOT of the ARC and adjacent sea waters. A positive development here is the work of the Ministry of Energy and Environmental Protection of Ukraine (currently Ministry of Environmental Protection and Natural Resources of Ukraine) on a Methodology for Calculating Damages to the State due to Unauthorized Use of Subsoil, which, among other things, takes into account the need to calculate losses in the ARC and Sevastopol. The methodology is essentially being developed as part of the work on the draft law of Ukraine No. 3576 of June 2, 2020 “On Amendments to Certain Legislative Acts of Ukraine on Enhancing Responsibility for Illegal Mining”38.

Tourism and recreation. Another significant blow to Ukraine came with the loss of a third of its tourism and recreation potential. As of early 2014, the Crimean peninsula had 517 km of beaches, 14 mud baths, over 100 mineral water springs as well as 160 caves. In addition, Ukraine lost access to over 600 spa hotels and health centers in Crimea39.

Cultural and historical landmarks. Ukraine’s State Register of Immovable Landmarks lists 1,112 landmarks of local significance (1,080 in the ARC and 32 in Sevastopol) and 86 landmarks of national significance (63 in the ARC and 23 in Sevastopol) in the ARC and Sevastopol.

36 V. Miroshnychenko. The sword of Damocles that threatens natural treasures. - Link: https://ukurier.gov.ua/uk/articles/damokliv-mech-sho-zagrozhuye-prirodnim- skarbam/?fbclid=IwAR0KgXCQwuEryH12knmn5R0nPM_veQ31RwmSx_jyf_M-oguPeLI6ITz9lxg 37 Environmental assessment and recovery priorities for eastern Ukraine. - Link: https://www.osce.org/uk/project- coordinator-in-ukraine/362581 38 Draft law of Ukraine No. 3576 of June 2, 2020 “On Amendments to Certain Legislative Acts of Ukraine on Enhancing Responsibility for Illegal Mining”. - Link: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=69003 39 Letter of the National Institute for Strategic Studies No. 293/446 of May 19, 2020 (reply to inquiry No. 449/01-09-20 of May 13, 2020 of the Office of the Permanent Representative).

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future In addition to that, there is a UNESCO World Heritage site in Crimea, and 6 sites are on UNESCO’s tentative list40. Unauthorized archeological excavations are regularly carried out in the TOT of Crimea, some involving representatives of Russian research institutions. Furthermore, the artifacts found are often illegally transported to Russia. Irreparable damage is being done to cultural landmarks in Crimea by unauthorized, low quality renovation works initiated by Russia’s occupying administration, which actually results in the destruction of cultural heritage sites. Perfect examples includes “renovations” of the Khan's Palace in Bakhchysarai and the Vorontsov Palace in Alupka.

Museums. As of January 1, 2014, there were 35 museums in the ARC and 5 in Sevastopol. At the same time, according to the State Statistics Service of Ukraine, the number of items in the main and auxiliary collections kept in ARC museums was 925,916 and 353,601, respectively; in Sevastopol - 321,444 and 49,63941. It has become common practice to organize unauthorized exhibitions of, or even transfer, Crimean exhibits to Russian museums for good.

Research institutions and universities. There are about 100 institutions, organizations and universities in Crimea that used to work, with great success, in a multitude of research areas. The National Academy of Sciences of Ukraine has 22 research institutions and organizations on the Crimean peninsula42.

40 Letter of the Ministry of Culture of Ukraine No. 2725/33/14-19 of October 15, 2019 (reply to inquiry No. 714/01-08- 19 of September 10, 2019 of the Office of the Permanent Representative). 41 Recommendations of the Parliamentary Hearings “Strategy for the Reintegration of the Temporarily Occupied Territory of the Autonomous Republic of Crimea and the City of Sevastopol into Ukraine: Problems, Solutions, Methods and Approaches” (June 15, 2016). 42 Letter of the National Institute for Strategic Studies No. 293/446 of May 19, 2020 (reply to inquiry No. 449/01-09-20 of May 13, 2020 of the Office of the Permanent Representative).

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

State-owned economic entities located in the temporarily occupied territory of the Autonomous Republic of Crimea and the city of Sevastopol (as of October 1, 2019) According to the Ministry of Economic Development, Trade and Agriculture of Ukraine (see Annex 2)43, there are 169 state-owned economic entities in the TOT of the ARC and Sevastopol that belong to the jurisdiction of various Ukrainian government agencies and other state institutions. Thus, 2 entities belong to the jurisdiction of the Ukrainian Parliament, 25 - to that of the Ministry of Agrarian Policy and Food of Ukraine (currently Ministry of Economy, Trade and Agriculture of Ukraine), 3 - the Ministry of Internal Affairs of Ukraine, 8 - the Ministry for the Development of Economy, Trade and Agriculture of Ukraine, 6 - the Ministry of Energy and Coal Industry of Ukraine (currently Ministry of Energy of Ukraine), 9 - the Ministry of Infrastructure of Ukraine, 3 - the Ministry of Culture of Ukraine (currently Ministry of Culture and Information Policy of Ukraine), 15 - the Ministry of Defense of Ukraine, 2 - the Ministry of Healthcare of Ukraine, 2 - the Ministry of Education and Science of Ukraine, 2 - the Ministry for the Development of Communities and Territories of Ukraine, 1 - the Ministry of Social Policy of Ukraine, 1 - the Ministry of Finance of Ukraine, 3 - the Ministry of Justice of Ukraine, 2 - the State Service of Geology and Subsoil of Ukraine, 1 - the State Agency on Energy Efficiency and Energy Saving of Ukraine, 7 - the State Geocadastre, 15 - the State Agency of Forest Resources of Ukraine, 1 - the State Reserve Agency of Ukraine, 4 - the State Agency of Fisheries of Ukraine, 1 - the State Judicial Administration of Ukraine, 5 - the State Administration of Affairs, 1 - the State Fiscal Service of Ukraine (now separated into the State Tax Service and the State Customs Service), 1 - the State Agency of Motor Roads of Ukraine, 12 - the State Property Fund of Ukraine, 17 - the National Academy of Agrarian Sciences of Ukraine, 9 - the National Academy of Sciences of Ukraine, and 11 - to the State Concern Ukroboronprom. Based on the available information, Ukraine’s losses resulting from the loss of these 169 economic entities are as follows: about 15 thousand jobs, UAH 3,778,067 thousand in terms of assets and UAH 1,856,723 thousand of potential net income from the sale of products. It should be noted that these figures do not give the complete picture: 1. no information on the economic activities of these entities is available beyond 2013; 2. no information is available on the assets and economic performance of a large number of these entities; 3. no information is available on the potential profits never received by these entities and the resulting losses for the state budget of Ukraine in 2014-2019 (it is necessary to apply appropriate scientific and methodological instruments of economic and mathematical modeling here44);

43 Letter of the Ministry of Economic Development, Trade and Agriculture of Ukraine No. 3223-06/26187-03 of April 23, 2020 (reply to inquiry No. 367/01-08-20 of the Office of the Permanent Representative). 44 No work is currently being done to develop such instruments: letter of the National Academy of Sciences of Ukraine No. 226/770-12 of May 28, 2020 (reply to inquiry No. 448/01-08-20 of May 13, 2020 of the Office of the Permanent Representative).

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future 4. no information is available on the fluctuation of currency exchange rates in the financial market in 2013-2019.

Private companies that relocated from the Autonomous Republic of Crimea and Sevastopol to other parts of Ukraine as a result of Russia’s temporary occupation of the Crimean peninsula and continued their operation (as of November 24, 2019) According to the State Statistics Service of Ukraine, as of the end of 2013 there were 77,529 business entities registered in the ARC, of which 16,228 were legal entities and 61,301 were sole proprietorships. In Sevastopol, 20,059 business entities were registered, of which 4,288 were legal entities and 15,771 were sole proprietorships. In total, there were 97,588 businesses in Crimea, with 20,516 legal entities and 77,072 sole proprietorships. According to the Ministry of Justice of Ukraine, 1,163 legal entities (826 from the ARC and 337 from Sevastopol) as well as 1,338 sole proprietors (1,047 from the ARC and 291 from Sevastopol) after February 20, 2014 relocated (changed their place of registration) from the ARC or Sevastopol to other parts of Ukraine and continued their activities. This makes for a total of 2,501 business entities (see Annex 3)45. In terms of percentages, 2.56% of business entities (including 5.67% of legal entities and 1.74% of sole proprietorships) changed their place of registration. No hard numbers are available on how many private legal entities and sole proprietors continue their activities in the TOT of the ARC and Sevastopol (or how many of them have been closed). This is due to several factors, namely: 1. some companies failed to undergo re-registration in accordance with the legislation of the occupying administration, or failed to undergo it in time but did so later, without notifying Ukrainian tax authorities about the termination of their activities; 2. some companies are registered both under Russian and Ukrainian legislation; 3. Ukraine’s record-keeping for business entities and that of Russia’s occupying administration have methodological and legal differences, with little correlation between them.

45 Letter of the Ministry of Justice of Ukraine No. 44894/25777-26-19/19.2.2 of December 3, 2019 (reply to inquiry No. 908/01-08-19 of November 11, 2019 of the Office of the Permanent Representative).

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Potential losses due to violated rights of Ukrainian citizens to their land On March 20, 2020, the Russian President signed Decree No. 20146, which unlawfully put certain areas of the TOT of the ARC and Sevastopol on Russia’s list of territories where foreign nationals, stateless persons and foreign legal entities may not own land, except for Pervomaisky, Krasnogvardeysky and Bilogirsky rayons of the ARC. Such actions of the occupying power constitute gross violations of international humanitarian law and human rights, specifically of the provisions of Article 1, Protocol I to the ECHR on the right to peaceful enjoyment of one’s property. It is also a violation of Article 147 of the Geneva Convention relative to the Protection of Civilian Persons in Time of War of 1949 and Articles 46, 53, 55, 56 of the Convention respecting the Laws and Customs of War on Land of 1907, as well as a war crime under the Rome Statute of the International Criminal Court (Article 8(2)(a)(IV)). So far no reliable information is available about the actual number of land plots located in the TOT of the ARC and Sevastopol that are the rightful property of Ukrainian citizens and citizens of other countries. This is due to the fact that state registration of real property rights via entering information in the State Register of Real Property Rights (hereinafter - State Register), which is maintained by the Ministry of Justice of Ukraine, only started on January 1, 2013. Before that, state registration of land ownership was done by structural subdivisions of the State Land Cadastre Center. Much of the accumulated records existed only on paper and were kept in the archives of the local bodies of the State Geocadastre, specifically in the TOT of the ARC and Sevastopol (the documents were never sent to mainland Ukraine). Transfer of information from paper to the State Register is only done upon request from a person, when receiving, transferring or terminating ownership of real estate. Also, current legislation does not require mandatory entry of information about the address of a land plot in the State Register, since it is the unique cadastral number that serves as the property’s main identifier. That is, the State Register’s software, developed in accordance with applicable regulations, does not technically allow for a reliable search using the geographical criteria47. According to Russia’s occupying administration, 11,572 plots of land are owned by “foreigners” in the areas of the so-called Republic of Crimea that have been unlawfully designated as “border areas”, with 9,747 plots owned by Ukrainians48. In Sevastopol, “foreigners” own 2,287 plots49. At the same time, only those land plots that were re-registered after 2014 in accordance with the legislation of Russia’s occupying administration have been added to the occupying administration’s records.

46 Decree of the President of the Russian Federation No. 201 of March 20, 2020 “On Amending the List of Border Areas Where Foreign Nationals, Stateless Persons and Foreign Legal Entities May Not Own Land, Approved by the Decree of the President of the Russian Federation No. 26 of January 9, 2011”. Link: http://publication.pravo.gov.ru/Document/View/0001202003200021 47 Letter of the Ministry of Justice of Ukraine No. 31303/11915-26-20/19.1.1 of July 15, 2020 (reply to inquiry No.517/01- 01-20 of June 3, 2020 of the Office of the Permanent Representative); letter of the State Service for Geodesy, Cartography and Cadastre of Ukraine No. 8-28-0.21-4388/2-20 of May 14, 2020 (reply to inquiry No. 422/01-09-20 of May 5, 2020 of the Office of the Permanent Representative). 48 Website of the so-called “State Committee for State Registration and Cadastre of the Republic of Crimea”. - Link: https://gkreg.rk.gov.ru/ru/article/show/3039?fbclid=IwAR3cd3uDCYiLMgCGQWVrT4jmk2X6UYl- KKIsyGT9C_6rt9XQXI4FOJic9D0 49 2,300 land plots in Sevastopol are owned by foreigners. - Link: https://rg.ru/2020/04/23/reg-ufo/v-sevastopole- naschitali-2300-uchastkov-v-sobstvennosti-inostrancev.html

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Thus, the actual number of the occupying power’s violations of Ukrainians’ land rights may be much higher.

Efforts of the national law enforcement and judicial systems The Prosecutor's Office of the ARC is providing procedural guidance in a number of criminal investigations into instances of seizure, expropriation and illegal use by the occupying power of buildings, structures, land, vehicles and other movable and immovable property located in Crimea and owned by the state, legal entities or individuals, in the context of criminal offenses under Articles 191, 341 and 438 of the Criminal code of Ukraine. Authorities are looking into, among other things, the illegal expropriation of the property of Ukraine’s Ministry of Internal Affairs, Ministry of Infrastructure, Ministry of Ecology, etc. Procedural supervision is also being provided in criminal investigations into the illegal expropriation of the property of individuals and legal entities, launched following the complaints of the injured parties. Pre-trial investigation has uncovered over 4,000 objects seized by the occupying administration, worth over UAH 60.2 billion. At the request of the Prosecutor’s Office, courts have issued orders authorizing seizure of about UAH 4.1 billion worth of property. As part of the pre-trial investigation, the Prosecutor's Office of the ARC has also been gathering evidence of war crimes committed in the TOT of the Crimean peninsula, which fall under the jurisdiction of the ICC50. A total of 250 injured parties have been identified whose real estate has been demolished (192 in the ARC and 58 in Sevastopol). 3,702 persons (170 and 3532 in the ARC and Sevastopol, respectively) had their land plots, with a total area of at least 355 hectares, seized by the occupying administration. Prosecuting authorities, together with NGOs, are collecting evidence of war crimes and crimes against humanity committed in the TOT to lay the groundwork for the future prosecution of all perpetrators at both the national and international levels51.

International courts52

Permanent Court of Arbitration PJSC CB PrivatBank and Finance Company Finilon LLC v. The Russian Federation, in connection with the expropriation of the companies’ assets in Crimea On April 1, 2015, PrivatBank and Finilon LLC initiated arbitration in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) against Russia under the Agreement between the Cabinet of Ministers of

50 The Autonomy’s Prosecutor's Office will provide a legal assessment of the decree of the President of the Russian Federation which barred Ukrainians from owning land in Crimea. - Link: https://ark.gp.gov.ua/ua/news.html?_m=publications&_t=rec&id=269663&fp=30 51 Violations of property rights in Crimea: how many hectares did Russia take from Crimeans. - Link: https://ark.gp.gov.ua/ua/news.html?_m=publications&_c=view&_t=rec&id=277783&fbclid=IwAR3bQIBwvWn- V7emExMkNB0BePrPQ-EzpAMbY3tSBTTyIbj5X1YMqG3FkJ0 52 Details about the source of information and applications submitted to international tribunals can be found on the website of the Ministry of Justice of Ukraine: https://lawfare.gov.ua/cases

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments. In their claims, PrivatBank and Finilon complained that Russia had violated the Agreement by applying measures that made it impossible to conduct banking activities in the temporarily occupied Crimea. On February 4, 2019, the Tribunal issued a unanimous interim award in favor of PrivatBank. According to PrivatBank, the Tribunal acknowledged the following: 1. The Tribunal has jurisdiction over all of the Claimants’ complaints against the Russian Federation; 2. By illegally expropriating PrivatBank’s assets in Crimea Russia violated its commitments under the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments; 3. PrivatBank is entitled to full compensation for these violations. On May 21, 2019, Russia expressed the wish to participate in the arbitration. On September 12, 2019, the Tribunal issued a procedural order, inviting Russia to provide its comments on the amount of damages and whether PrivatBank could be considered an investor under the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments. In its procedural order, the Tribunal set 17-21 May 2021 as the date of the next oral hearings in the case.

Naftogaz and others v.The Russian Federation On October 17, 2016, National Joint Stock Company Naftogaz Ukraine and its six subsidiaries - PJSC Chornomornaftogaz, PJSC Ukrtransgaz, Likvo, PJSC Ukrgazvydobuvannia, PJSC Ukrtransnafta and Gaz Ukrainy (hereinafter - Naftogaz) - initiated arbitration against Russia under the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments. In its claim, Naftogaz complained about a violation of its rights under the Agreement in connection with the expropriation of its assets and the assets of its subsidiaries in the TOT of the Crimean peninsula. On February 22, 2019, the Tribunal issued an interim decision on jurisdiction and liability in favor of Naftogaz. The Tribunal acknowledged its jurisdiction over the claims and ruled that Russia had violated a number of provisions of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments, including the article that prohibits expropriation. On June 27, 2019, Naftogaz filed a claim with the Tribunal regarding the amount of damages caused by the expropriation of Naftogaz's assets in Crimea. Naftogaz and its subsidiaries are asking the Tribunal to award them USD 5.2 billion as compensation. The Tribunal is expected to make a ruling no earlier than late 2020.

International Court of Justice Case on the application of the International Convention on the Elimination of All Forms of Racial Discrimination and the International Convention for the Suppression of the Financing of Terrorism (Ukraine v. Russia) In January 2017 Ukraine stated that Russia had violated the Convention for the Suppression of the Financing of Terrorism: its officials and private citizens were providing weapons, funds, training and other forms of assistance to armed groups, including those of the so-called “DPR” and “LPR” and other related groups and individuals operating in

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Ukraine, and that Russia had violated the Convention on the Elimination of All Forms of Racial Discrimination by discriminating against Crimean Tatar and Ukrainian populations in Crimea since February 2014, trying to establish Russian dominance on the peninsula by eliminating competing cultures. Ukraine turned to the ICJ to establish violations of said Conventions by Russia, to uphold its violated rights and to force Russia to refrain from such actions in the future, as well as to collect damages. Status of the case: ongoing. ICJ has ordered interim measures in favor of Ukraine.

Arbitral Tribunal constituted under Annex VII to the 1982 United Nations Convention on the Law of the Sea Dispute concerning coastal state rights in the Black Sea, Sea of Azov, and Kerch Strait (Ukraine v. The Russian Federation) As part of its claim, Ukraine is asking the Arbitral Tribunal to stop Russia from violating the 1982 UN Convention on the Law of the Sea and to reaffirm Ukraine's rights as a coastal state in the Black and Azov seas and the Kerch Strait, as well as to compel Russia to respect Ukraine's sovereign rights in its waters, stop the illegal use of Ukraine’s resources and pay compensation for the damage caused. On February 21, 2020, the Arbitral Tribunal ruled that the dispute between Ukraine and Russia would be moving forward to the merits stage.

International Court of Arbitration of the International Chamber of Commerce PJSC “State Savings Bank of Ukraine” v. The Russian Federation Arbitration against Russia in connection with the expropriation of the assets of the State Savings Bank of Ukraine (hereinafter - Oschadbank) in the TOT of the Crimean peninsula. On November 26, 2018, the Tribunal made a ruling in the case of Oschadbank v. Russia. In its decision, the Tribunal stated that it had jurisdiction over the dispute and found that Russia had illegally expropriated Oschadbank’s assets in Crimea, violating its rights as an investor. The Tribunal awarded Oschadbank USD 1.3 billion damages as well as interest, to be accrued until Russia complies with the ruling. The ruling is final. On February 19, 2019, the Russian Government filed an appeal against the Tribunal’s decision with the Paris Court of Appeal. On July 17, 2019, the Kyiv Court of Appeal granted Oschadbank’s application to be given permission for the enforcement of the Tribunal’s ruling of November 26, 2018. On October 22, 2019, after examining Russia’s appeal, the Paris Court of Appeal ruled in favor of Oschadbank, rejecting Russia’s request to suspend enforcement of the Tribunal’s ruling of November 26, 2018.

International Tribunal for the Law of the Sea Case concerning the capture of three Ukrainian Navy vessels and twenty-four members of their crews Arbitration for the prescription of provisional measures against Russia for the immediate release of three Ukrainian naval vessels and twenty-four crew members unlawfully captured by Russia in the Black Sea on November 25, 2018. The application was filed to establish Russia’s violation of the 1982 United Nations Convention on the Law of the Sea and to obtain appropriate compensation. On May 25, 2019, the International Tribunal for the Law of the Sea prescribed provisional measures, instructing Russia to immediately release the Ukrainian ships

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future Berdyansk, Nikopol and Yany Kapu as well as their crews, and to allow them to return to Ukraine. However, Russia did not comply with the provisional measures. The Ministry of Foreign Affairs of Ukraine condemned Russia’s failure to comply with the provisional measures of May 25, 2019 prescribed by the Tribunal and the continued unlawful detention of the 24 Ukrainian sailors. On September 7, 2019, the 24 Ukrainian sailors along with 11 political prisoners were returned to Ukraine as part of a prisoner exchange, following an agreement between the Ukrainian and Russian presidents. On November 18, 2019, the ships were returned to Ukraine’s custody in the Black Sea, but as material evidence in a criminal investigation conducted by Russia and missing much of their on-board equipment. On November 21, 2019, the first procedural hearing was held in the case on the detention of three Ukrainian naval vessels and 24 members of their crews. Status of the case: ongoing.

International Criminal Court As part of the pre-trial investigation, the Prosecutor's Office of the ARC is collecting evidence of war crimes committed in the TOT of the Crimean Peninsula, which fall under the jurisdiction of the International Criminal Court. In 2017, a general communication was sent to the Office of the Prosecutor of the ICC concerning the illegal expropriation of state and private property on the temporarily occupied peninsula. This information was reflected in the reports of the ICC Prosecutor for 2017-2019 on the preliminary investigation of the situation in the TOT of the ARC and Sevastopol53. On July 27, 2020, the Prosecutor's Office of the ARC sent a second communication to the ICC, regarding violations of the right to property in the TOT of the ARC and Sevastopol. The report concerns 3,952 persons whose property rights were violated in Crimea. The communication was prepared by the Prosecutor's Office of the ARC and the Regional Center for Human Rights based on the monitoring of court decisions. A total of 250 victims were identified whose real estate was demolished (192 in the ARC and 58 in Sevastopol). The occupying administration confiscated land plots with a total area of at least 355 hectares (170 persons in the ARC and 3532 persons in Sevastopol). Prosecuting authorities, together with NGOs, are collecting evidence of war crimes and crimes against humanity committed in the TOT, to eventually bring all perpetrators to justice at both the national and international levels54.

Prepared by: A. Tverdovskyi, chief consultant, Service for the Reintegration and Deoccupation of the ARC, Office of the Permanent Representative of the President of Ukraine in the ARC

53 The Autonomy’s Prosecutor's Office will provide a legal assessment of the decree of the President of the Russian Federation which barred Ukrainians from owning land in Crimea. - Link: https://ark.gp.gov.ua/ua/news.html?_m=publications&_t=rec&id=269663&fp=30 54 Violations of property rights in Crimea: how many hectares did Russia take from Crimeans. - Link: https://ark.gp.gov.ua/ua/news.html?_m=publications&_c=view&_t=rec&id=277783&fbclid=IwAR3bQIBwvWn- V7emExMkNB0BePrPQ-EzpAMbY3tSBTTyIbj5X1YMqG3FkJ0

Prepared by the Office of the Permanent Representative of the President of Ukraine in the ARC, August 2020. This Reference Note will be updated in the future

Contact details of the Office of the Permanent Representative: 01014, Kyiv, 8 Petro Bolbochan Street +38(044)255-05-48, е-mail: [email protected]