“Freeze assets belonging to Russia” – Ukrainian company files application in Jerusalem court for compensation for assets seized by Russia in Ukrainian Crimea

This has already attracted the attention of the Israeli authorities, as it involves “extremely sensitive diplomatic issues.”

The District Court has already ruled to send the petition to the Russian government for a response, and has notified the Israeli government about the need for intervention. The issue is being discussed in the Prime Minister’s Office, the Ministry of Foreign Affairs, the National Security Council, the Israel Land Authority, and other bodies.

Israeli officials have confirmed that this is a very delicate diplomatic matter.

The Ukrainian energy company DTEK Krymenergo, part of the investment group SCM, owned by Ukrainian businessman Rinat Akhmetov, has filed a petition in the Israeli court requesting the seizure of assets owned by Russia. This step is important for protecting Ukrainian interests on the international stage amid the ongoing war. The case could affect diplomatic relations between Israel and Russia, as it involves strategically important assets such as the Sergei Palace hotel in Jerusalem and the HaMa’alot parking lot.

This was reported by i24NEWS on May 5, 2025.

Petition to Seize Russian Assets: Diplomatic Sensitivity

The petition was filed in the District Court of Jerusalem by the Ukrainian company DTEK Krymenergo, which aims to use the international arbitration decision against Russia made by the court in the Netherlands in November 2023.

This decision provides for compensation for Ukrainian assets seized by Russia on the Crimean Peninsula. After Crimea was annexed by Russia in 2015, the assets of DTEK were “nationalized,” and the company deemed this an illegal expropriation, initiating international arbitration in The Hague, demanding compensation from the Russian Federation for the seizure of energy assets.

Now DTEK Krymenergo is seeking to enforce this arbitration decision in Israel by seizing assets related to Russia within the country. This petition has already attracted the attention of the Israeli authorities, as it involves extremely sensitive diplomatic matters.

How Does This Affect Israel and Russia?

If the petition is granted, the seizure of assets such as the Sergei Palace hotel in Jerusalem and the HaMa’alot parking lot may become a serious diplomatic challenge for Israel. These assets are owned by the Russian government and are extremely important to Russian President Putin, making this case highly sensitive from Israel’s foreign policy perspective.

Moreover, it is worth noting that Ukraine has filed a petition in the District Court of Jerusalem to seize two Russian-owned properties in the city — the hotel at the Sergei Courtyard and the Ma’alot parking lot (located between King George and Shmuel A-Nagid streets).

The total value of the claim exceeds 200 million dollars, but as experts emphasize, the main goal is not the money, but the prestige and political influence that Russia is trying to maintain by owning historical buildings on the Holy Land, including in Jerusalem.

These assets are part of a broader Russian strategy to expand its influence in the region, further complicating the diplomatic situation for Israel.

Court Hearing and Next Steps

The District Court of Jerusalem has already ruled that the petition should be sent to the Russian government for a response. The Israeli government has also been informed and is likely to intervene diplomatically. As reported by i24NEWS, this situation is extremely sensitive diplomatically, and the court’s decision could have far-reaching consequences for Israel-Russia relations.

Israel is likely to try to avoid direct involvement in this process, considering its diplomatic and economic ties with Russia. This will create yet another choice for Israel between bad and very bad options: either a fallout with Russia, which has not yet recovered from Israel’s refusal to return the Alexandrovsky Courtyard, or de facto rejection of the international court, which has recognized the legitimacy of the seizure of Russian property in favor of Ukraine.

Key Facts of the Case

• Petition filed by: Ukrainian energy company DTEK Krymenergo
• Court of jurisdiction: District Court of Jerusalem
• Assets for seizure: Sergei Palace hotel and HaMa’alot parking lot in Jerusalem
• International ruling: Arbitration ruling from the Dutch court that provides for compensation for seized Ukrainian assets
• Reaction from Israel: Sensitivity of the issue at the diplomatic level

Prospects and Possible Consequences

This case shows how international law can become an important tool for Ukraine in its fight for its assets on the international stage, even in countries where Russia has significant influence. However, for Israel, this is a complex issue that requires a careful diplomatic approach to avoid exacerbating relations with Russia, with whom Israel has important economic and strategic ties. The situation with Russian assets in Israel only intensifies the atmosphere of friendship and trust.

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