Arbitration court orders Russia to pay $50bn in Yukos case - convenient timing?

[Nemo1024]

Arbitration court orders Russia to pay $50bn in Yukos case
http://rt.com/business/176064-yukos-russia-50bn-damages/

The International Arbitration Court in the Netherlands has ended a decade long case brought by shareholders in the defunct Yukos oil company, and ordered Russia to pay about $50 billion in damages.

The official ruling published on Monday said the Russian government violated the EU Energy Charter when it redistributed Yukos’ assets after bankruptcy in 2003.

Didn't know Russia was in EU...

The Hague’s Permanent Court of Arbitration ordered Russia to compensate the plaintiffs with $50 billion – less than half the initial $114 billion demanded by the former shareholders. Russia has also been ordered to pay about $65 billion in legal costs.The claim was lodged by Gibraltar-based Group Menatep Limited (GML) - the company used by Russia’s once richest man Mikhail Khodorkovsky to manage Yukos.

In other word, the whole sum. Looks like Khodorkovskij was released from prison prematurely.

A private company fails, and it turns out that the taxpayers should cough up for the failure. It's so like USA...

Also, no surprise there:

“This is the biggest arbitration award in history,” as ITAR-TASS quotes Emmanuel Gilyard, a lawyer at the Shearman Sterling bureau, who underlined that the case became a ‘mega-arbitration’.

In 2003 Russian authorities accused the management of the country’s largest oil company at the time of corruption. A number of senior figures in the company were subsequently found guilty of fraud and tax evasion and were sentenced to jail. As a result, Yukos went bankrupt and its assets were absorbed by the state oil company Rosneft. Soon after the bankruptcy the company’s shareholders applied to The Hague International Arbitration Court, claiming $100 billion in compensation.

Isn't the timing just so convenient. Like the French BNP bank ruling?

And a couple of readers' comments:

Sean Kavanagh 28.07.2014 09:05

So when is The Netherlands going to be sued for their army looking the other way while thousands of innocent people were murdered in the former Yugoslavia. That report was released two weeks ago and nobody seems to have noticed it. How very strange indeed!

...

Aleksey 28.07.2014 09:05

Everyone already knows what happened to Yukos; you are late to the game. Putin dismantled that criminal organization, and nationalized the assets. Putin is a legend just for what he did to Khadorkovsky.

...

ArtypNk 28.07.2014 09:05

That's impartial... "Pay this here fraud because he lost his company after he was jailed". Lol, this would be about the same as american taxpayers paying Bernard Madoff for some dumb reason.

...

Emmett 28.07.2014 09:51

This is clearly a political decision. And still some Russian officials call the American slave known as the EU partners!!

Clearly political and with the 65 billion dollar in legal fees. The US and EU/NATO are bankrupt and are "legally" robbing nations where they can't simply go in and loot assets by force. This is enough loot for US and EU/NATO to split with each other and support their crumbling economies.
Banks in EU are failing and likely to start a domino effect. Western banks and economies are in need of a cash infusion which US and EU don't have.

This one is spot on, even if a bit misleading wrt Yeltsin. It was Berezovskij who was running Yelstin, while proxying for Washington:

Vincent 28.07.2014 09:08

First Khodorkovsky robs Russia by making Yeltsin drunk and then he claims even more. Typical mobster mafia tactics. And the EU courts go along with that. EU is proving to be a big scam run by the Mafia.

iStateOfMind3 28.07.2014 09:20

What in the....

HSBC laundered blood soaked drug money for south american cartels and paid a $1bn fine.
Russia took back state assets that landed in the hands of people that didn't own a penny is some cases before Russian collapsed.
They were so obviously working as front men for a gargantuan criminal enterprise.
I mean didn't one of those guy make copper bracelets to earn a living before the collapse? The rest were not much better off either.

[hologram]

Didn't know Russia was in EU...

Don't know that you can judge problem in foreign jurisdiction ?

[Alex077]

The Hague officially confirmed that Russia has lost more than $ 50 billion in Yukos case

Final Awards Issued in 3 Arbitrations Between Former Shareholders of Yukos and the Russian Federation

THE HAGUE,
On 18 July 2014, arbitral tribunals constituted under the Energy Charter Treaty rendered their final awards in three cases involving former shareholders of OAO Yukos Oil Company (“Yukos”) and the Russian Federation.
 
The arbitrations were commenced in 2005 by the former shareholders Hulley Enterprises Limited (Cyprus), Yukos Universal Limited (Isle of Man) and Veteran Petroleum Limited (Cyprus) (“Claimants”).
 
By agreement of the parties, the cases were heard together before identical arbitral tribunals. The arbitral tribunals were composed of The Hon. L. Yves Fortier PC CC OQ QC of Canada (as Chairman), Dr. Charles Poncet of Switzerland, and Judge Stephen M. Schwebel of the United States of America.....

http://www.pca-cpa.org/shownews.asp?ac=view&nws_id=440&pag_id=1261

[Nemo1024]

That sum, together with the "legal fees" constitute 1/5th of Russia's total currency reserve. Payable to people who didn't have a cent to their names before the fall of USSR and subsequent robbing of Russia's natural resources.

This article is an interesting read with regard to the overall picture:
http://rt.com/op-edge/176068-eurasia-new-great-game-war/

[247crypto]

the Energy Charter Treaty

That is not ratified in Russian Federation.

[Nemo1024]

the Energy Charter Treaty

That is not ratified in Russian Federation.

Pretty much this. An article from 2006:

Why Russia refuses to ratify Energy Charter
http://en.ria.ru/analysis/20060407/45451331.html

[gmx95]

Its a political decision, especially at the moment. I don't think Russia will even bother to reply to it.

[bitsmichel]

Its a political decision, especially at the moment. I don't think Russia will even bother to reply to it.

Right, exactly at this time they order to pay $50 billion - while at the same time, the west is a war with Ukraine.

Didn't know Russia was in EU...

Don't know that you can judge problem in foreign jurisdiction ?

As an American I may be misinformed, but European laws do not apply in Russia as far as I know.

[Nemo1024]

Its a political decision, especially at the moment. I don't think Russia will even bother to reply to it.

Right, exactly at this time they order to pay $50 billion - while at the same time, the west is a war with Ukraine.

Didn't know Russia was in EU...

Don't know that you can judge problem in foreign jurisdiction ?

As an American I may be misinformed, but European laws do not apply in Russia as far as I know.

...unless Russian Parliament ratifies some international agreements or treaties with EU, which is not the case here.

[onlyu]

50B? Does anyone really expect Putin to pay?

[bitsmichel]

50B? Does anyone really expect Putin to pay?

Of course not, I think even the court isn't expecting anything.. it's just propaganda.

[Balthazar]

I'm buying their fine for $1.

[zolace]

$65 billion in court costs? that seems absurd even to an American. But even that soon will not be a problem, why?

Oil will soon be at $200+ a barrel.... Because Libya is not shipping oil and will not be for some time - years, or Iraq, or Syria. Sudan is again spiraling into civil war. Boko Haram will take down production in Niger. But when ISIS turns on KSA, the middle east taps will all but be closed - save for Iran which will be shipping to China, as will Venezuela and Russia. The US will not Frack itself out of this mess it created let alone the EU.

[lihuajkl]

50B? Does anyone really expect Putin to pay?

don't think so!

[noviapriani]

I'll have to give Russia some credit for trying to handle this US/West stand off against them with diplomacy by trying to form partnerships with other communities around the world. Handshakes as opposed to blowing up infrastructures killing women and children. But, one thing for sure, you can't use diplomacy against a foe when diplomacy is never a part of a foe's game plan. That's why it may be the reason why someone invented the term fighting fire with fire.

[kuroman]

It is a convenient timing and one way to pressure Russia and that's goes without saying, is it deserved or not? I don't know, it's impossible, but again other countries including the US does such practices and goes away with it, well I guess it's all about geopolitical power

[Ekaros]

$65 billion in court costs? that seems absurd even to an American. But even that soon will not be a problem, why?

Oil will soon be at $200+ a barrel.... Because Libya is not shipping oil and will not be for some time - years, or Iraq, or Syria. Sudan is again spiraling into civil war. Boko Haram will take down production in Niger. But when ISIS turns on KSA, the middle east taps will all but be closed - save for Iran which will be shipping to China, as will Venezuela and Russia. The US will not Frack itself out of this mess it created let alone the EU.

65 billion? Just how many millions of man hours they have spend there? What if all that time could have been used to something productive?

[bryant.coleman]

What a load of BS. Russia is not even going to listen to this. It is well known to everyone that Mikhail Khodorkovsky and his friends are hardcore criminals, who looted billions of dollars from the Russian treasury. A part of the loot ended up in Israel and other Western nations. Putin should be commended for taking strong steps against these criminal oligarchs.

[Nemo1024]

Yukos shareholders have graciously agreed to negotiate with Russian government as long as it behaves itself reasonably:
http://ria.ru/economy/20140729/1018013990.html

Russia is going to appeal, as the court was not qualified to handle this case.

In the meantime, the liberal 5th column in Russia started whining and scaring people with the Yukos court outcome and that defending Russian interests in general will be too costly to Russia, so it is better to just succumb and let US do whatever they like....
http://rusvesna.su/news/1406634217

[Nemo1024]

Russia ordered to pay $2.5 bn to Yukos shareholders
http://rt.com/business/177028-yukos-european-court-human-rights/

Russia must pay $2.51 bn (€1.87 bn) in compensation to the former shareholders of Yukos, once Russia's largest private oil company, for unfair tax proceedings. The European Court of Human Rights has also ruled Russia must pay €300,000 in legal costs.

Russia will also need to produce “a comprehensive plan for distribution of the award of just satisfaction” within the coming six months, according to the ruling published Thursday.

So, a tax evader, who invested in a fraudulent company should get compensation because his investment should have been a risk-free 1000% profit?

Also, again, very convenient timing for this second ruling from another court, as if orchestrated.

It looks like "the right to defraud a county" is now a part of human rights, if that case was treated in the Human Rights court.