THE HAGUE, Netherlands (AP) – A Dutch court on Wednesday quashed a $50 billion award Russia had been ordered to pay the former majority shareholders of Yukos, a major win for Moscow in the high-stakes dispute over the dismantling of what was once Russia’s largest oil producer.
The former shareholders immediately vowed to continue their legal battle for compensation and to appeal the decision, while the Kremlin hailed it as a key legal victory that should halt a slew of cases around the world aimed at enforcing the award.
The Hague District Court’s written ruling overturned a July 2014 decision by the Permanent Court of Arbitration, which said that Moscow used massive tax claims to seize control of Yukos in 2003 and silence its CEO, Mikhail Khodorkovsky.
Khodorkovsky, an opponent of President Vladimir Putin, had begun to use his vast wealth to fund opposition parties challenging Putin’s power.
The Dutch court said the Hague-based arbitration panel did not have jurisdiction to rule in the case because the arbitration was based on an energy treaty that Russia had signed but had not ratified.