03:33Mandatory credit: Supreme court of Netherlands (Hoge Raad der Nederlanden) // Logo covering not allowed // News purposes only
The Supreme Court in the Hague on Friday held a final oral hearing in the case of former shareholders of the Yukos oil company versus Russia for an unprecedented $50 billion (€41 billion) compensation.
The lawyer representing the Russian side in the litigation, said his colleagues had brought “truly legal issues” to the court that were far from the “political or historical” background of the case.
The Russian state is trying to prove that the Energy Charter Treaty, to which Yukos shareholders initially appealed, has not been finally ratified by Russia. The shareholders were supported in 2014 by the arbitration court, which ruled that Russia had misappropriated their investments and awarded them compensation in the amount of $50 billion.
In a cassation appeal filed in May 2020, Russia cited eight alleged grounds for overturning the appellate ruling. Deputy Minister of Justice Mikhail Galperin in an interview with the Russian news agency Interfax said that "the main international legal argument is that Russia did not agree to refer this case to international arbitration at all, and accordingly, the arbitrators did not have the competence to consider the claim of Yukos shareholders against Russia. The idea we used in the Yukos case regarding the principle of separation of powers follows not only from the main provisions of the Russian constitution and the constitutions of other European countries, but is fully consistent with the Vienna Convention on the Law of Treaties, the European Convention for the Protection of Human Rights. international investment conventions also echoes the positions of Finland, Italy, Germany and other countries."
“The context over the purpose of the [Energy Charter Treaty] ECT on the score of the fact, that no further requirements can be read into it, because after all the object and purpose of the ECT, which is, after all, is attracting investments as much as possible. Wide definition of investor and investment are in line with this. These proceedings have been recognised by the court of appeal. This decision is also fully in line with decision of every ECT tribunal, that previously ruled on this issues," said Jan de Bie Leuveling Tjeenk, the lawyer representing Yukos shareholders, in court, Friday.
As the judge of the Supreme Court of the Netherlands, Vincent van den Brink, said at the end of the session, the parties must send their written replies by March 5.
“We will set a date for the opinion of the advocate general," he added. Thus, if the Supreme Court of the Netherlands does not redirect the case to the European Court, the final decision will be made in 2021-2022, otherwise the proceedings could take up to another five years.
"The plaintiffs still have the legal opportunity to try to enforce the arbitration award against Russia in a number of countries. Since 2014, they have made unscrupulous attempts to seize not only state property, but also the assets of Russian companies in Western Europe," Halperin told Interfax.
At the peak of its development, Yukos produced about 20 percent of Russian oil, which allowed the company to become one of the most promising enterprises in the world. It was formed as a result of the privatisation of former state assets after the collapse of the Soviet Union, when Mikhail Khodorkovsky acquired them at an auction. Later, economist Andrei Illarionov called this operation "the fraud of the century."
In turn, Khodorkovsky claims that his arrest on charges of fraud and the subsequent collapse of Yukos were related to his political activism and strained personal relations with Russian President Vladimir Putin. However, the head of state claims that the oligarch, who was once considered the richest man in Russia, pleaded guilty to him privately in exchange for a pardon in 2013. Khodorkovsky insists that he has given up any claims to his former empire and that he will not win if a settlement is reached on the Yukos case.
Netherlands: Dutch court considers world’s biggest arbitration award as Yukos vs Russia final hearings finished
The Supreme Court in the Hague on Friday held a final oral hearing in the case of former shareholders of the Yukos oil company versus Russia for an unprecedented $50 billion (€41 billion) compensation.
The lawyer representing the Russian side in the litigation, said his colleagues had brought “truly legal issues” to the court that were far from the “political or historical” background of the case.
The Russian state is trying to prove that the Energy Charter Treaty, to which Yukos shareholders initially appealed, has not been finally ratified by Russia. The shareholders were supported in 2014 by the arbitration court, which ruled that Russia had misappropriated their investments and awarded them compensation in the amount of $50 billion.
In a cassation appeal filed in May 2020, Russia cited eight alleged grounds for overturning the appellate ruling. Deputy Minister of Justice Mikhail Galperin in an interview with the Russian news agency Interfax said that "the main international legal argument is that Russia did not agree to refer this case to international arbitration at all, and accordingly, the arbitrators did not have the competence to consider the claim of Yukos shareholders against Russia. The idea we used in the Yukos case regarding the principle of separation of powers follows not only from the main provisions of the Russian constitution and the constitutions of other European countries, but is fully consistent with the Vienna Convention on the Law of Treaties, the European Convention for the Protection of Human Rights. international investment conventions also echoes the positions of Finland, Italy, Germany and other countries."
“The context over the purpose of the [Energy Charter Treaty] ECT on the score of the fact, that no further requirements can be read into it, because after all the object and purpose of the ECT, which is, after all, is attracting investments as much as possible. Wide definition of investor and investment are in line with this. These proceedings have been recognised by the court of appeal. This decision is also fully in line with decision of every ECT tribunal, that previously ruled on this issues," said Jan de Bie Leuveling Tjeenk, the lawyer representing Yukos shareholders, in court, Friday.
As the judge of the Supreme Court of the Netherlands, Vincent van den Brink, said at the end of the session, the parties must send their written replies by March 5.
“We will set a date for the opinion of the advocate general," he added. Thus, if the Supreme Court of the Netherlands does not redirect the case to the European Court, the final decision will be made in 2021-2022, otherwise the proceedings could take up to another five years.
"The plaintiffs still have the legal opportunity to try to enforce the arbitration award against Russia in a number of countries. Since 2014, they have made unscrupulous attempts to seize not only state property, but also the assets of Russian companies in Western Europe," Halperin told Interfax.
At the peak of its development, Yukos produced about 20 percent of Russian oil, which allowed the company to become one of the most promising enterprises in the world. It was formed as a result of the privatisation of former state assets after the collapse of the Soviet Union, when Mikhail Khodorkovsky acquired them at an auction. Later, economist Andrei Illarionov called this operation "the fraud of the century."
In turn, Khodorkovsky claims that his arrest on charges of fraud and the subsequent collapse of Yukos were related to his political activism and strained personal relations with Russian President Vladimir Putin. However, the head of state claims that the oligarch, who was once considered the richest man in Russia, pleaded guilty to him privately in exchange for a pardon in 2013. Khodorkovsky insists that he has given up any claims to his former empire and that he will not win if a settlement is reached on the Yukos case.
Mandatory credit: Supreme court of Netherlands (Hoge Raad der Nederlanden) // Logo covering not allowed // News purposes only
The Supreme Court in the Hague on Friday held a final oral hearing in the case of former shareholders of the Yukos oil company versus Russia for an unprecedented $50 billion (€41 billion) compensation.
The lawyer representing the Russian side in the litigation, said his colleagues had brought “truly legal issues” to the court that were far from the “political or historical” background of the case.
The Russian state is trying to prove that the Energy Charter Treaty, to which Yukos shareholders initially appealed, has not been finally ratified by Russia. The shareholders were supported in 2014 by the arbitration court, which ruled that Russia had misappropriated their investments and awarded them compensation in the amount of $50 billion.
In a cassation appeal filed in May 2020, Russia cited eight alleged grounds for overturning the appellate ruling. Deputy Minister of Justice Mikhail Galperin in an interview with the Russian news agency Interfax said that "the main international legal argument is that Russia did not agree to refer this case to international arbitration at all, and accordingly, the arbitrators did not have the competence to consider the claim of Yukos shareholders against Russia. The idea we used in the Yukos case regarding the principle of separation of powers follows not only from the main provisions of the Russian constitution and the constitutions of other European countries, but is fully consistent with the Vienna Convention on the Law of Treaties, the European Convention for the Protection of Human Rights. international investment conventions also echoes the positions of Finland, Italy, Germany and other countries."
“The context over the purpose of the [Energy Charter Treaty] ECT on the score of the fact, that no further requirements can be read into it, because after all the object and purpose of the ECT, which is, after all, is attracting investments as much as possible. Wide definition of investor and investment are in line with this. These proceedings have been recognised by the court of appeal. This decision is also fully in line with decision of every ECT tribunal, that previously ruled on this issues," said Jan de Bie Leuveling Tjeenk, the lawyer representing Yukos shareholders, in court, Friday.
As the judge of the Supreme Court of the Netherlands, Vincent van den Brink, said at the end of the session, the parties must send their written replies by March 5.
“We will set a date for the opinion of the advocate general," he added. Thus, if the Supreme Court of the Netherlands does not redirect the case to the European Court, the final decision will be made in 2021-2022, otherwise the proceedings could take up to another five years.
"The plaintiffs still have the legal opportunity to try to enforce the arbitration award against Russia in a number of countries. Since 2014, they have made unscrupulous attempts to seize not only state property, but also the assets of Russian companies in Western Europe," Halperin told Interfax.
At the peak of its development, Yukos produced about 20 percent of Russian oil, which allowed the company to become one of the most promising enterprises in the world. It was formed as a result of the privatisation of former state assets after the collapse of the Soviet Union, when Mikhail Khodorkovsky acquired them at an auction. Later, economist Andrei Illarionov called this operation "the fraud of the century."
In turn, Khodorkovsky claims that his arrest on charges of fraud and the subsequent collapse of Yukos were related to his political activism and strained personal relations with Russian President Vladimir Putin. However, the head of state claims that the oligarch, who was once considered the richest man in Russia, pleaded guilty to him privately in exchange for a pardon in 2013. Khodorkovsky insists that he has given up any claims to his former empire and that he will not win if a settlement is reached on the Yukos case.