Dutch Court Overturns $50B Yukos Award Against Russia
AMSTERDAM, April 20 (Reuters) - In a victory for Moscow, a Dutch court on Wednesday overturned an order that Russia pay $50 billion to shareholders in defunct oil company Yukos, saying that the Hague-based Permanent Court of Arbitration had no jurisdiction.
Former Yukos shareholders said they would appeal the surprise decision, which could impact earlier rulings in Belgium and France that four former shareholders were entitled to seize Russian state assets to compensate them for the loss of the oil giant.
Once controlled by Mikhail Khodorkovsky, then one of Russia's richest men, Yukos was bankrupted after Khodorkovsky fell out with Russian leader Vladimir Putin and the government began demanding payment of huge sums in back taxes. State oil company Rosneft got most of its assets.
In July 2014, the Permanent Court of Arbitration (PCA) in The Hague ruled that the four plaintiffs - not including Khodorkovsky - were entitled to compensation for the loss of the company, entitling them to seize Russian state assets.
But in Wednesday's ruling, the district court in The Hague said Russia had never ratified the treaty under which the PCA had claimed jurisdiction in the affair.
"The court quashed the judgments by the international arbitrators on the ground that they had no power to intervene in these matters as arbitrators," the ruling said.
A key moment in Putin's consolidation of power in Russia, the 2003 Yukos affair led to Khodorkovsky being imprisoned on fraud and tax evasion charges just as he had appeared set to emerge as a political rival to Putin. He was released suddenly in December 2013 and now lives in exile.
"We will appeal this surprise decision by The Hague Court and have full faith that the rule of law and justice will ultimately prevail," said Tim Osborne, director of GML, the company representing the four shareholders.
(Reporting By Thomas Escritt; Editing by Raissa Kasolowsky)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension