On 23, 24 and 30 September 2019 at The Hague Court of Appeal in the Netherlands, the former Yukos majority shareholders argue that the Arbitral Awards ordering the Russian Federation to compensate them for the unlawful expropriation of their investment should be reinstated.
In July 2014, an independent international Arbitral Tribunal in The Hague ruled unanimously that the Russian state unlawfully expropriated Yukos. It awarded the former majority shareholders over $50 billion in compensation. The Tribunal found that “Russian courts bent to the will of Russian executive authorities to bankrupt Yukos, assign its assets to a state-controlled company [Rosneft] and incarcerate a man [Mikhail Khodorkovsky] who gave signs of becoming a political competitor.”
In 2016, the District Court of The Hague set aside the Arbitral Awards. It decided that the Tribunal did not have jurisdiction to hear the claims since the Russian Federation had signed but not ratified the Energy Charter Treaty, the legal basis for the arbitral proceedings. The former Yukos majority shareholders believe that the District Court’s decision is fundamentally flawed and must be overturned. The parties have submitted to the Court of Appeal hundreds of pages of written submissions, as well as dozens of expert reports and witness statements.
Tim Osborne, Chief Executive of GML, said: “The Russian Federation cannot be above the law. We are confident that the Court of Appeal will reverse the District Court decision, and justice will prevail. In the course of the hearing we will further explain why the Russian Federation’s arguments against the Arbitral Awards and the Arbitral Tribunal are misplaced, and why those Awards must be reinstated.”