Moscow - The Permanent Court of Arbitration in The Hague has granted a lawsuit filed by Group Menatep Limited (GML) structures, which controlled the company Yukos, against Russia, Kommersant has reported.
The lawsuit (in which the plaintiffs claimed over $100 billion) was filed in 2005 by the GML subsidiaries Hulley Enterprises (Cyprus) and Yukos Universal Limited (Isle of Man), which held a controlling package in Yukos. The plaintiffs alleged that Article 45 of the Energy Charter protects investors from assets expropriation by the state. In late 2009, a court ruled that the former owners of Yukos had a right to protection of their interests under the provisions of the charter. Russia has signed the Energy Charter Treaty, but has not ratified it. Nevertheless, the court found that Russia must fulfill the requirements of the charter in the Yukos case.
Sources have told Kommersant the court decision was unanimous. The compensation was halved, but is still astronomical ($50.02 billion). This amount includes the value of Yukos at the moment of the end of the bankruptcy proceedings in the company in 2007, which was based on the market indexes of oil and gas companies plus potential dividends that GML could have received.
Russia has until Jan. 15, 2015 to make the payment. If no payment is made by this date, interest will begin to be added. Russia can file claims with Dutch courts seeking the annulment of this decision within ten days beginning from July 28, sources told Kommersant.
