In the United States court suspended on payment of $50 billion to Yukos shareholders

Court of the district of Columbia, United States, has suspended consideration of the claim of former Yukos shareholders on the recognition and enforcement in the territory of the United States of the decision of the Hague arbitration court, which in 2014 awarded them $50 billion compensation. Russia, which in the American process represented by the law firm White & Case, asked the court to deny the former shareholders of Yukos in the recognition and enforcement of the Hague decision, but the court sided with the plaintiffs and suspended the case, as they asked.

As stated in the rationale of chief judge beryl Howell, dated 30 September, she decided to suspend the process until January 21, 2019 or an earlier date if the appeal is ex-Yukos shareholders in the Hague the decision of the Hague district court will be reviewed faster. In April 2016 the district court overturned the arbitration decision of $50 billion, but “yukosovtsy” in July filed an appeal and has estimated that its consideration will take 2.5 years (hence the date January 21, 2019).

The protection of Russia insisted that the court can not suspend the case until, until you make a decision on the jurisdiction (Russia believes that the court has no jurisdiction to examine this claim). “The United States remains one of the few jurisdictions outside the Netherlands, where the Russian Federation is currently able to present their position in relation to sovereign immunity.

Therefore, Russia has no intention to allow applicants to avoid final verdict in respect of the enforceability of the Hague arbitral awards in the United States,” — explained 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 in the Declaration to the American court in September.

In addition, Russia argued that the mere preservation of the status of the defendant at the suit of the former shareholders of Yukos (as in the case of suspension, not dismissal) is causing “significant economic damage <…> credit ratings as the Russian Federation and potentially millions of individual borrowers because rating agencies perceive $50 billion as a contingent liability Russia. But the U.S. Supreme court rejected these arguments.

After the victory of 2014 in arbitration former shareholders of Yukos, which represents Gibraltar GML, began the process of recognition and enforcement of this decision in Belgium, France, Germany, India, the UK and the USA (in the first two jurisdictions was even arrested assets). But the April decision of the district court of the Hague has turned the situation in favor of Russia. In June, the former shareholders and Russia by mutual consent suspended the process in the UK in July “jukosoft” withdrew their claims in Germany and India (with the right of re-treatment).