Former shareholders of YUKOS oil company — Hulley Enterprises, Yukos Universal and Veteran Petroleum — appealed the April ruling by the Hague district court, which overturned the $50-billion compensation for the “Yukos case”, reads the press release of the holding company GML, arrived in . “We remain firm in their intention to involve the Russian Federation liable for expropriation of Yukos” — quoted in the press release the head of the GML Tim Osborn. He is confident that “the appeal will be successful.”
The former shareholders are convinced that the court of appeal of the Hague, where today have been filed with their statement, “correct errors” made by the district court in its April decision.
April 20, 2016 district court of the Hague overturned the historic decision by the Permanent court of arbitration, in 2014, obliging Russia to pay $50 billion to former Yukos shareholders. The district court determined that international arbitration did not have jurisdiction to entertain the dispute between the Russian Federation and the former shareholders of Yukos: Russia in the 1990-ies signed a multilateral Treaty to the Energy Charter Treaty (ECT, it sued the former shareholders of Yukos), but has not ratified it.
At the losing side had three months to appeal. The court of appeal will consider the matter de novo, that is, studying all the arguments and details again, said previously a partner at law firm De Brauw Westbroek Blacksonte Marnix Latin representing former shareholders of Yukos. The future verdict of the court of appeal of the Hague can still be challenged in the Supreme court of the Netherlands, therefore, the judicial processes between Russia and the former shareholders of Yukos in the Netherlands can take a few years.
To save time and money, the former shareholders decided to suspend the running of the earlier procedure for recognition and enforcement of an arbitral award for $50 billion in countries such as UK, USA, Belgium and Germany, press release of GML. However, all these processes will be activated again, if the appeals court will side with the former shareholders of Yukos.
Despite the fact that the decision of international arbitration was repealed by the local Dutch court, in some countries (e.g. in France) the former shareholders of Yukos, due to local regulations, may continue the arbitral award and, in particular, to seize assets of the Russian Federation. Previously, GML had reported being able to arrest in France in the framework of the so-called protective measures of the Russian assets by €1 billion.