The Hague arbitration has closed one of the multibillion-dollar Yukos against Russia


As it became known, affiliated with the former oil giant YUKOS to a Dutch company Financial Performance Holdings (FPH) has withdrawn his claim against the Russian Federation in the Permanent court of arbitration in the Hague, the court has dropped the charges.

FPH is one of the three former entities of the group Yukos, in 2013-2014 initiated trials at the Hague for arbitration against Russia. The other two Yukos Capital is a Luxembourg and Cyprus Luxtona. The total volume of requirements of Russia on these claims of $15 billion, said Wednesday the head of the International centre for the legal protection (MTSPZ, on behalf of the Ministry of justice coordinates international protection from claims of former shareholders of Yukos) Andrey Kondakov. Previously, the requirements are these claims is not known, and all these things, “the second wave”, says the Ministry of justice about them, almost no coverage. The parties to these arbitration proceedings are bound by obligations of confidentiality.

That FPH (successor to offshore Glendale, who owned the promissory notes of Yukos tens of billions of rubles) decided to discontinue the proceedings with Russia, learned of the Declaration Kondakova, filed in the U.S. court on September 16. There is ongoing consideration of the claim of the three former shareholders of Yukos Based Hulley Enterprises, Yukos Universal and Veteran Petroleum) to Russia over the recognition of the decision of the Hague arbitration, awarded in 2014, these three institutions under the control of GML (formerly Group Menatep Limited) compensation of $50 billion Arbitration proceedings previously initiated by the Energy Charter Treaty through agents of the oligarchs by a company called Financial Performance Holdings, has stopped. In the understanding of the Russian Federation, the case will be dismissed,” wrote ” the Declaration (obtained through the base materials of American courts). Under the “oligarchs,” the Russian side assumes Mikhail Khodorkovsky, Platon Lebedev, Leonid Nevzlin, Mikhail Brudno, Vladimir Dubov and Vasily Shakhnovsky.

FPH wanted to charge Russia $3.5 billion, plus interest, to the minutes of the meeting of the Board of Directors Stichting Dutch Stichting Administratiekantoor Financial Performance Holding from December 2008, which read . In 2007, the lawyers drew up a draft of the letter with the financial requirements of Russia on behalf of the FPH in connection with the promissory notes owned by Glendale; arbitration wanted to start in September 2008, but plans were delayed. In the end, FPH, Yukos Capital and Luxtona filed suit until 2014 when the decision was made on compensation in favour of GML $50 billion.

In April 2016, the Hague district court overturned the arbitration decision of $50 billion, after which the Ministry of justice expressed the hope that it will be able to have a positive impact on the prospects for consideration of other claims of former shareholders of Yukos filed on the basis of the Energy Charter Treaty”.

FPH withdrew unilaterally. What is the opinion is unknown, but after the April decision of the Hague district court, the prospects of arbitration proceedings against Russia on the “Yukos case” has decreased significantly. The district court then found that the arbitration had jurisdiction to consider the dispute under the Energy Charter Treaty (ECT), which Russia has signed but not ratified. The claims of the FPH, Yukos Capital and Luxtona was filed it is the ECT.

As said Andrey Kondakov, on the claims of Yukos Capital and Luxtona previously held hearings on the question of jurisdiction, now expected decisions on this issue. The decision on whether the arbitration jurisdiction to consider Yukos Capital dispute with Russia, was expected in April, but was postponed (perhaps the referees are studying the decision of the Hague district court), the same Luxtona decision on the dispute with Russia is expected by the end of 2016.

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