Hulley enterprises ltd and veteran petroleum trust, both organized under the laws of cyprus. The permanent court of arbitration pca arbitrations were launched on 3. In the final award rendered on 18 july 2014, after 10 years of proceedings, the arbitral tribunal unanimously ruled that the russian federation. The claimants are three shareholders of yukos oil corporation a yukosa, namely. Jul 28, 2014 weve now got the arbitration decision in the yukos case from the court in the hague and the essential finding is that russia did in fact steal yukos from its rightful owners, the shareholders of. Nov 30, 2009 yukos universal limited isle of man and the russian federation interim award on jurisdiction and admissibility 30 november 2009 tribunal l. The dutch court concluded that the dispute resolution provisions of ect did not apply to the russian federation. Here is a short summary of the most important points of the yukos arbitration award which former shareholders are now trying to. Gml, via its wholly owned subsidiaries yukos universal limited and hulley enterprises limited together with veteran petroleum limited, a pension fund serving former. A traffic light shows red near the russian oil firm yukos s building in the siberian oil town of nefteygansk, july 26, 2004.
The fact that the investments were made by russians in russia, this makes the yukos dispute beyond the. Awards 2009 and russias challenge of the yukos tribunals jurisdiction after the. Kremlin appeals hague court decision in yukos case rt. Judith levine, assistant secretary to the tribunal. I have previously served as research dean, chair of the finance subject area, and director of the institute of finance and accounting at london business school, as professor of economics and head of department at the european university institute, as assistant professor of economics at the university of. Hulley enterprises ltd v russian federation, pca case no aa 226, final award 18 july 2014. Pdf on jun 1, 2015, sophie nappert and others published the yukos. Despite these being final awards, it seems unlikely that the yukos cases are behind us. Russia said they would appeal the ruling in the dutch. It is to be noted here that yukos capital lodged an appeal against the. Iareporter is used by the worlds largest law firms, dozens of government agencies around the world, and numerous academic institutions. The substantial involvement of arbitral secretaries.
This is by multiples the largest award that the ecthr has ever made, although the award is. Hereinafter reference is made only to the first case. In a survey conducted by young icca, 67 % of the respondents rejected the idea that the arbitral secretary should prepare the first draft of an arbitral award. Former yukos majority shareholders focus on the hague to. They collectively owned over 60% of the shares in yukos. Gml, via its wholly owned subsidiaries, yukos universal limited and hulley enterprises limited, together with veteran petroleum limited, a pension fund serving former. Jul 31, 2014 previous next by jarrod hepburn editor s note. Jun 19, 2015 the yukos arbitration decision in a nutshell. The yukos interim awards on jurisdiction and admissibility. Russia wins legal victory over yukos damages financial times.
Reprinted with the permission of jurisnet llc, huntington, new york 11743. It should be noted somewhere that yukos also offered to pay the sum it owed. Although menatep did not offer the highest bid, it nevertheless won the auction. On 20 april 2016, the district court in the hague the district court set aside six arbitral awards rendered by a threemember arbitral tribunal in a dispute between former. This is article 2 in a threepart series examining in detail the recent awards rendered in a trio of arbitrations by majority shareholders of the yukos oil company against the. Landmark decision on the energy charter treaty in a landmark decision rendered on november 30, 2009, an arbitral tribunal constituted pursuant to the energy. Veteran petroleum ltd v russian federation, pca case no aa 228, final award 18 july 2014. Yukos awards annulment by the hague district court iar. A case study of success and failure in an unstable institutional environment article pdf available in journal of change management 103 september 2010. The award was 20 times bigger than any previous arbitral award and equivalent to 20 per cent of russias annual. Aa 227, expert report of james dow november 8, 2014.
He is a contributor and editor for global arbitration news. In yukos arbitration, ect tribunal rejected dcf valuation, and opts for comparable companies method publication date. Landmark decision on the energy charter treaty in a landmark decision rendered on november 30, 2009, an arbitral tribunal constituted pursuant to the energy charter treaty and the uncitral arbitration rules, and sitting in the hague under the auspices of the permanent court of arbitration,1 ruled that the. The tribunal held that russia had launched a full assault on yukos and its beneficial owners in order to bankrupt yukos and appropriate its assets while, at the same. Yukos was the envy of khodorkovskys peers and many of his contemporaries began plotting the yukosisation of their own companies. The name is yukos oil company or yukos oil corporation. This can be explained by the fact that menatep also oversaw the bidding process and that the highest. Finally, we consider the high profile arbitration award for in excess of usd 50 billion made by the permanent court of arbitration in the hague in favour of former yukos shareholders against russia see arbitration.
On the other hand, it might be remarkable that the young icca guide allows an arbitral secretary to draft parts of the award. Landmark decision on the energy charter treaty pdf client publication, 5. Jul 31, 2014 previous next by jarrod hepburn editor. Augustseptember 2014 litigation and dispute resolution. A traffic light shows red near the russian oil firm yukoss building in the siberian oil town of. Yet in the recent yukos award, the tribunal found the dcf estimate contained in claimants expert report unreliable, in part due to errors and in part based on his admission that his dcf analysis had been influenced by his own predetermined notions as to what would be an appropriate result. The provisional application of the energy charter treaty ect 3 was a crucial issue in the yukos interim awards on jurisdiction and admissibility rendered on. In its decision, the district court held that the award could not stand on the ground that the. This is article 3 in a threepart series examining in detail the recent awards rendered. I am james dow, professor of finance at london business school. Sep 17, 2015 on the other hand, it might be remarkable that the young icca guide allows an arbitral secretary to draft parts of the award.
Weve now got the arbitration decision in the yukos case from the court in the hague and the essential finding is that russia did in fact steal yukos from its rightful owners. Russia sues yukos vehicle in bid to claim arbitration award. Yukos landmark decision on the energy charter treaty. This chapter was in progress when the yukos awards were handed down. Aug 14, 2014 despite these being final awards, it seems unlikely that the yukos cases are behind us. The state whirligig, vedomosti, 15 august 2005, exh. Commenting on the announcement, yukos former chief executive officer, steven theede said. Shares in yukos could be acquired not only in russia. Yukos universal limited isle of man and the russian federation interim award on jurisdiction and admissibility 30 november 2009 tribunal l.
May, 2016 the tribunal held that russia had launched a full assault on yukos and its beneficial owners in order to bankrupt yukos and appropriate its assets while, at the same time, removing mr. Yukos was acquired from the russian government by russian oligarch mikhail khodorkovskys bank menatep during the controversial loans for shares auctions of the mid 1990s. Gml, via its wholly owned subsidiaries, yukos universal limited and hulley enterprises limited, together with veteran petroleum limited, a pension fund serving former yukos employees, were the majority shareholders of the former yukos oil company. Gml, through its whollyowned subsidiaries, yukos universal limited and hulley enterprises.
Russia said they would appeal the ruling in the dutch courts, criticising the seriously flawed judgement as politically biased. The original yukos damages award, equivalent to 20 per cent of russias annual budget. Executive articles editor, brooklyn journal of international law. This is article 2 in a threepart series examining in detail the recent awards rendered in a trio of arbitrations by majority shareholders of the yukos oil company against the russian federation. A case study of success and failure in an unstable institutional environment article pdf available in journal of change management 103 september 2010 with 1,204. It should be noted somewhere that yukos also offered to pay the sum it owed to the russian government in full at one point, only to find that its bank accounts had been frozen to prevent it from doing so. These three awards were followed within days by the announcement of an.
Kremlin appeals hague court decision in yukos case 9 feb, 2016. Shares in yukos could be acquired not only in russia but also on the major stock exchanges of europe and the united states yukos was considering a full floatation on the new york stock exchange. Here is a short summary of the most important points of the yukos arbitration award which former shareholders are now trying to enforce in belgium, france and other european countries. The yukos interim awards on jurisdiction and admissibility confirms. Yukos shareholders aim to reinstate arbitral awards against.
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