Ukrainian energy company seeks Russian assets in Israel

The Ukrainian energy company DTEK Krymenergo is seeking Russian-owned assets in Israel, the news outlet i24News reported on Monday.

The Ukrainian company has filed a formal motion with the Jerusalem District Court, invoking a Dutch court ruling that allows it to seek compensation for assets seized by the Russian Federation in Russian-occupied Crimea.

DTEK Krymenergo has demanded the transfer of two Russian government-owned assets in Jerusalem: the Sergei Palace Hotel and the HaMa'alot parking lot. The Ukrainian company has appealed to an Israeli court, hoping it will intervene and grant ownership of the properties.

However, it remains unclear whether the Israeli judiciary will grant the request. The two assets in question are reportedly of significant sensitivity to Russian President Vladimir Putin. A ruling in favor of the Ukrainian company could further strain the already fragile diplomatic relations between Israel and Russia.

The District Court of Jerusalem reportedly formally requested a response from the Russian government concerning the Ukrainian motion. Due to the diplomatic sensitivity of the issue, the Prime Minister's Office (PMO), the Israeli Foreign Ministry, the National Security Council, and the Israel Land Authority are all reportedly involved in handling the request. Unnamed Israeli officials have acknowledged the sensitivity of the matter, noting that it could affect Jerusalem’s diplomatic relations with Moscow. 

Before Russia’s 2022 invasion of Ukraine, Israel maintained strong relations with both countries. While many Israelis and most Western democracies firmly supported Ukraine, the Israeli government initially sought to remain neutral and preserve stable ties with both Kyiv and Moscow.

In February 2022, Ukrainian President Volodymyr Zelenskyy reportedly asked Israel’s then-Prime Minister Naftali Bennett to mediate in the war between Ukraine and Russia. Bennett reportedly offered to assist in ending the conflict while expressing support for the embattled Ukrainian people. 

"Prime Minister Bennett reiterated his hope for a speedy end to the fighting, and said that he stands by the people of Ukraine in these difficult days," the PMO in Jerusalem stated at the time. 

Bennett consequently offered to mediate during a conversation with Putin. 

However, Russian atrocities in Ukraine, combined with Western pressure on Israel to support Kyiv, led to a deterioration in Israeli-Russian relations, further compounded by Moscow’s deepening military alliance with Iran. 

In addition, Russia refused to publicly condemn the Hamas attack on southern Israel on Oct. 7, 2023. Instead, Moscow hosted senior Hamas officials and began taking diplomatic action against the Jewish state in international forums.

In November 2023, just one month after the Hamas massacre, Russian UN Ambassador Vasily Nebenzya criticized Israeli military operations against Hamas in Gaza.

“The only thing they can muster is continued pronouncements about Israel’s supposed right to self-defense, although as an occupying power, it does not have that power as confirmed by the advisory opinion of the International Court of Justice handed down in 2004,” Nebenzya claimed at the time.

In 2005, Israel unilaterally withdrew from the entire Gaza Strip. In 2007, Hamas violently seized power in Gaza from its rival, the Fatah party, and subsequently began launching rockets at Israel.