Shareholders that had a collective 70.5%
shareholding in Yukos have been awarded US$50 billion in damages
against The Russian Federation in three awards published
The tribunal was unanimous in finding that The
Russian Federation had breached the Energy Charter Treaty by taking
steps equivalent to expropriation of the claimants’
investment in Yukos.
The sums awarded amount to one ninth of
Russia’s annual federal budget, or approximately 75% of the
market capitalisation of Rosneft.
The news is likely to be the first stage in lengthy
proceedings relating to the recognition and enforcement of the
awards. With the arbitrations seated in The Hague, The Russian
Federation will doubtless be investigating its avenues of appeal in
the Netherlands. In the interim, the successful claimants will have
an eye on the assets of The Russian Federation against which they
may seek to enforce the awards.
The full text of the awards is here.