Former CJI DY Chandrachud Appointed By Russia To Arbitrate Oschadbank Dispute Under 1998 Investment Pact

The dispute concerns Oschadbank’s assets and banking operations in Donetsk, Luhansk, Kherson and Zaporizhzhia, which the Ukrainian bank claims were lost as a result of Russia’s conduct following the conflict, particularly after the full-scale invasion of Ukraine in 2022. The claim is understood to involve losses running into hundreds of millions of dollars.

Chandrachud’s appointment is notable because he had previously declined approaches from Russia to act as its arbitrator in separate investment treaty disputes. He had also earlier stepped down as an appointing authority in the Wintershall Dea arbitration after Russia disclosed that it had approached him to serve as its nominee. In the present Oschadbank dispute, however, he has agreed to act as Russia’s arbitrator.

According to reports on the latest appointment, Chandrachud had declined Russia’s offer three times before eventually accepting the appointment.

Three-member tribunal

The tribunal will be headed by Costa Rican arbitrator and former trade minister Dyalá Jiménez, who was jointly selected by Russia and Oschadbank.

Chandrachud has been appointed by Russia, while Oschadbank has nominated Greek arbitrator and National University of Singapore professor Stavros Brekoulakis.

The arbitration was formally commenced by Oschadbank on April 7, 2026. The bank had earlier served Russia with a Notice of Dispute on July 24, 2025, which it said went unanswered.

Oschadbank said its claim concerns the loss of substantial assets and operations in the four Ukrainian regions and alleges breaches by Russia of its obligations under the investment treaty.

Russia-Ukraine Treaty

The proceedings have been initiated under the 1998 Agreement between the Government of the Russian Federation and the Cabinet of Ministers of Ukraine on the Encouragement and Mutual Protection of Investments, commonly referred to as the Russia-Ukraine bilateral investment treaty (BIT).

The treaty was signed in Moscow on November 27, 1998 and entered into force on January 27, 2000. It was designed to create favourable conditions for mutual investments and promote economic cooperation between the two countries.

Among other things, the treaty provides protections for investments made by investors of one contracting state in the territory of the other and contains provisions allowing qualifying investment disputes to be submitted to arbitration. Earlier investment treaty arbitrations involving Ukrainian investors and Russia have also proceeded under this treaty.

Ukraine subsequently terminated the treaty through legislation enacted in 2023. However, the treaty contains protections relevant to investments and disputes arising during the period in which it was in force, and the present Oschadbank proceedings have been brought under its arbitration framework. Ukraine's official legislative database records the 1998 agreement as no longer in force following the 2023 termination law.

Oschadbank's claim

Oschadbank has alleged that it suffered substantial losses to its assets and business operations in Donetsk, Luhansk, Kherson and Zaporizhzhia.

In its April 2026 announcement, the Ukrainian bank said the arbitration notice set out alleged breaches of Russia's obligations under the treaty as well as alleged violations of fundamental norms of international law.

The latest proceedings are separate from an earlier arbitration concerning Oschadbank's assets in Crimea, in which the bank had secured a $1.5 billion award against Russia, according to the material provided for this report.

Chandrachud's earlier Russia-related arbitration role

Chandrachud had previously been appointed as the appointing authority in arbitration proceedings brought by German energy company Wintershall Dea against Russia under the Energy Charter Treaty. The role involved procedural issues concerning the constitution of the arbitral tribunal.

He later resigned from that role after disclosing that Russia had approached him to act as its arbitrator in the Wintershall proceedings and in another arbitration involving Ukrainian energy company Ukrenergo.

The Oschadbank dispute therefore marks a fresh international arbitration role for the former CJI, this time as Russia's nominated arbitrator on a tribunal constituted to hear claims brought by a Ukrainian state-owned entity.