Dutch court overturns $50b Yukos ruling

The victory for Russia may free up accounts and property belonging to state companies

Russia succeeded in its battle to overturn a $50 billion (Dh184 billion) arbitration ruling, the biggest ever, after a Dutch court ruled that the panel of judges never should have reviewed the matter.

A district court in The Hague ruled that the tribunal misinterpreted a treaty that Russia signed but never ratified and wasn’t qualified to issue the award to the former owners of Yukos Oil Co, according to a copy of the judgement.

The victory for Russia may free up accounts and property belonging to state companies abroad that were frozen while GML Ltd, a holding company belonging to four former Yukos owners, attempted to collect the award. France froze about $1 billion in assets — much of which was later released — as it enforced a 2014 judgement. Russia’s legal team will file a motion to overturn asset seizures in Belgium and France, said Andrey Kondakov, the general director of the International Centre for Legal Protection, which is coordinating Russia’s defence.

GML said it plans to appeal the decision.

“The Russian Federation was not bound by the provisional application of the arbitration regulations,” according to the ruling. “The Tribunal wrongly declared itself competent in the Arbitration to take cognisance of the claims and issue the ensuing award.” – Bloomberg