Kremlin welcomes Hague court judgment on Yukos case

At the Yukos main office, Moscow, 2004.

At the Yukos main office, Moscow, 2004.

Grirogy Sysoev / TASS
This is a major decision in international arbitration practice, it says

Moscow welcomes the cancellation of the Hague Court judgment, which compelled Russia to pay $50 billion to former Yukos shareholders, Kremlin press secretary Dmitry Peskov said.

"We welcome the Hague District Court ruling, which overruled the Hague Tribunal's judgment compelling the payment of $50 billion to former Yukos shareholders," Peskov told reporters on April 20.

This is a major decision in international arbitration practice and, importantly, "this is the first time in 20 years that the Hague Tribunal's judgment has been overruled," he said.

"The Russian Federation insisted from the very beginning of that proceeding that the Tribunal judgment disregarded crucial aspects of the international law," Peskov said.

Russia's main argument was that it did not ratify the Energy Charter, to which the former Yukos shareholders or, to be more exact, three offshore companies referred in their claim against Russia, he said.

In addition, Russia proved that the former Yukos shareholders were not foreign investors and did not qualify for the protection provided by the Energy Charter.

In fact, these are "offshore companies controlled by Russian citizens," he said.

"We are perfectly aware that this is not the end of story, and the work will continue in a variety of jurisdictions. We expect all countries to immediately begin to halt the enforcement procedure," Peskov said.

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