U.S. Courts Still Weigh Enforcement
While the Dutch decision ends Russia’s appeals in Europe, the fight continues in U.S. courts. On August 5, the D.C. Circuit Court of Appeals sent the case back to a lower court to reconsider whether the arbitration agreement between Russia and the Yukos shareholders is valid under the Foreign Sovereign Immunities Act (FSIA).
The appeals court faulted U.S. District Judge Beryl A. Howell for deferring to the arbitral tribunal’s judgment rather than independently evaluating Russia’s claim of sovereign immunity, writing:
“Whether an arbitration agreement exists is a jurisdictional fact… that must be independently evaluated by the district court.”
Russia argues that it never agreed to arbitration, noting that although it signed the Energy Charter Treaty (ECT)—which includes the arbitration clause—it never ratified it. Moscow insists that the treaty’s provisions conflict with Russian law.
A Two-Decade Battle for Justice
The Yukos dispute has spanned more than 20 years, crossing courts and continents. Following the expropriation, former shareholders launched a relentless global campaign to collect what they were owed. The Dutch Supreme Court’s ruling marks their most significant victory yet, though the challenge of enforcing the judgment remains.
GML CEO Tim Osborne hailed the decision as both a legal and moral triumph:
“This is not just a historic victory for Yukos shareholders—it reaffirms that no nation, not even a rogue state like Russia, stands above the law,” Osborne said. “Real justice, however, means enforcement. We will now target Russian assets worldwide until every penny of the $65 billion is paid.”
