Yukos shareholders awarded $50bn against Russia
The Permanent Court of Arbitration in The Hague has awarded shareholders that had a collective 70.5% shareholding in Yukos some $50bn in damages against The Russian Federation. The tribunal was unanimous in finding that The Russian Federation had breached the Energy Charter Treaty by taking steps equivalent to expropriation of the claimants’ investment in Yukos. The sum awarded amount to one ninth of Russia’s annual federal budget, or approximately 75% of the market capitalisation of Rosneft.
Law firm CMS Camerono McKenna notes: ‘The news is likely to be the first stage in lengthy proceedings relating to the recognition and enforcement of the awards. With the arbitrations seated in The Hague, The Russian Federation will doubtless be investigating its avenues of appeal in the Netherlands. In the interim, the successful claimants will have an eye on the assets of The Russian Federation against which they may seek to enforce the awards.’
News Item details
Journal title: Petroleum Review
Region: Russia & Central Asia
Keywords: Company news
Countries: Russia -
Subjects: Banking, finance and investment
