Russia said they would appeal the ruling in the dutch courts, criticising the seriously flawed judgement as politically biased. It must be recalled that the russian federation signed the ect on 17. Three shareholders of yukos oil corporation ojsc yukoshulley enterprises limited hulley or claimant, a company organized under the laws of cyprus, yukos universal limited yul, a company organized under the laws of the isle of man, and veteran petroleum limited vpl, a company organized under the laws of cyprus collectively, claimantsinitiated. The russian federation, under the rules of the arbitration institute of the stockholm chamber of commerce a stateowned russian oil company the claimants statement of claim dated.
Court as an application, alternative to yukos application that steel js order be set aside immediately, for an order pursuant to section 1035 of the arbitration act adjourning the decision on enforcement of the award pending the determination of the appellants application in stockholm to set aside the award. Article 3 discusses the damages valuations and is available here. Yukos universal limited isle of man and the russian federation interim award on jurisdiction and admissibility 30 november 2009 tribunal l. Did an arbitration agreement exist due to provisional application of the ect. He is the first key yukos insider to come forward to speak in specific detail about the billiondollar bribery scheme run by the yukos oligarchs. Court of appeal in the hague overturns district court decision and. Diana bentley of lexis nexis interviewed yaraslau kryvoi. Hague former yukos shareholders court of appeal in the. Here is a short summary of the most important points of the yukos arbitration award which former shareholders are now trying to enforce in belgium, france and other european countries.
Yukos shareholders aim to reinstate arbitral awards against. Yukos shares the award on the merits, dated 12 september 2010, in the case of roslnvest co uk ltd v. A traffic light shows red near the russian oil firm yukoss building in the. Alleged frustration of merger between yukos and sibneft. The counsels for the russian federation and the former yukos majority shareholders discussed the question of the apportionment of legal costs incurred in the scope of the appeal proceedings against the french enforcement orders of the arbitral awards rendered in july 2014 against russia. After 10 years of proceedings, the awards were annulled by the. Russia are several international court and arbitral cases seeking. Hulley, veteran petroleum limited and yukos universal limited were shareholders of yukos the shareholders.
This note argues that the dutch district courts opinion leads to poor. Jul 31, 2014 previous next by jarrod hepburn editors note. Golub drafted a letter to be used as a template by one or more of the. A case study of success and failure in an unstable institutional environment article pdf available in journal of change management 103 september 2010 with 1,204. Yukos does not ask this court to decide its tax dispute with the russian government nor to award it money damages against the russian government. Yukos universal limited, with its registered office in douglas, isle of man. Going concern as a limiting factor on damages 3 ltd. In 2004, they initiated arbitration proceedings against russia in the hague based on the energy charter treaty ect as in force at that time. Rather, if a timely proof of claim is filed by the russian government, yukos requests only that the court, in. Russia has announced that it is to file an appeal with the dutch supreme court and the outcome of that.
Rules, between yukos universal limited isle of man and the russian federation, dated july 18, 2014 annexed as ex. In yukos arbitration, ect tribunal rejected dcf valuation, and opts for comparable companies method publication date. Shares in yukos could be acquired not only in russia but also on the major stock exchanges of europe and the united states yukos was considering a full floatation on the new york stock exchange. In a surprising opinion that was recently released, the court quashed the entire arbitration award, claiming that the tribunal lacked jurisdiction to decide the case despite the arbitration provision in the ect. The yukos interim awards on jurisdiction and admissibility. Yukos was the envy of khodorkovskys peers and many of his contemporaries began plotting the yukosisation of their own companies. Four years later, the publicly traded yukos had overtaken lukoil as russias largest oil producer and held reserves comparable in size to those of exxon. Commenting on the announcement, yukos former chief executive officer, steven theede said. A challenge to that award by the russian federation in the district court in the hague in the. Historic award in the yukos majority shareholders arbitration in a historic usd 50 billion award rendered on july 18, 2014, an arbitral tribunal constituted pursuant to the energy charter treaty held unanimously that the russian federation breached its internati onal obligations under the. Today at the hague court of appeal, the former majority shareholders of yukos will argue that the arbitral awards ordering the russian. The tribunal, applying the uncitral arbitration rules.
Shareholding in the russianincorporated yukos oil company ojsc. This is by multiples the largest award that the ecthr has ever made, although the award is. Yukos was acquired from the russian government by russian oligarch mikhail khodorkovskys bank menatep during the controversial loans for shares auctions of the mid 1990s. Historic award in the yukos majority shareholders arbitration in a historic usd 50 billion award rendered on july 18, 2014, an arbitral tribunal constituted pursuant to the energy charter treaty held unanimously that the russian federation breached its international obligations under the energy charter treaty by destroying yukos oil company. Russia wins legal victory over yukos damages financial times. Today, yukos files quarterly reports in accordance with u. Despite these being final awards, it seems unlikely that the yukos cases are behind us. The yale journal of international law online the yukos. Russia successfully appealed the award to a dutch district court. The shareholders claimed that russia expropriated their investments in yukos and failed. The original yukos damages award, equivalent to 20 per cent of russias annual budget. Respondent did not produce documents, but wrote to the tribunal. The provisional application of the energy charter treaty ect 3 was a crucial issue in the yukos interim awards on jurisdiction and admissibility rendered on 30 november 2009. Yukos awards annulment by the hague district court iar.
Pdf on jun 1, 2015, sophie nappert and others published the. In yukos arbitration, ect tribunal rejected dcf valuation, and opts for comparable companies method investment arbitration reporter iar. Energy charter treaty by destroying yukos oil company and appropriating its assets. Arbitrators in other complex investment cases with equally large files and. The yukos award and the debate over the new york convention steven levy as the obama administration defends the transpacific partnership tpp, and several presidential candidates rail against it,1 international arbitration has increasingly come under public scrutiny. Yukos v russian federation thus, the new york convention, both through the discretionary wording in article v and the more favourable right provision at article vii1, provides a means through which a member state may enforce an award that has been set aside at the seat of the. This chapter was in progress when the yukos awards were handed down on 18 july. Historic award in the yukos majority shareholders arbitration. This is article 3 in a threepart series examining in detail the recent awards rendered. On 23 november 2017, another hearing was held before the paris court of appeals in the famous yukos case. Between 1996 and 2003 yukos became one of the biggest and most. Final award, in the matter of an arbitration before a tribunal constituted in accordance. The yukos case is an interesting example of a historic award which thus far has proven not to be worth the paper its written on, said charles c. Turning to examine russias liability for breaches of the energy charter treaty in its july 18, 2014 arbitral award, the tribunal in a trio of related cases by yukos shareholders devoted nearly half of their 600 page awards to factual analysis.
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