Judge Rejects Russian Bid, Clearing the Way for Former Yukos Investors
LONDON (AP) — In a dramatic legal confrontation, Russia’s attempt to shield itself behind the cloak of state immunity has been thwarted. A judge’s ruling on Wednesday paves the way for former Yukos Oil investors to enforce an arbitration award nearing $60 billion, despite Russia’s spirited defense.
A Costly Legacy for Russia
Judge Sara Cockerill delivered a resounding rejection of the Russian Federation’s High Court bid, asserting that it couldn’t invoke state immunity to evade claims brought by three companies representing former Yukos investors. Yukos, once Russia’s largest oil company, crumbled under government pressure in 2006, setting the stage for this monumental legal battle.
The award, originally exceeding $50 billion, was granted by an arbitration tribunal in The Hague under the international Energy Charter Treaty of 1991. Over the years, it has accrued nearly $8 billion in interest, with counsel for the investors estimating interest at a staggering $2.8 million per day.
