The Hague court might be recognized as the most humane establishment in the world. Netherlands’ court ordered Russia to pay $50 billion in Yukos oil case. The former company’s shareholders were considered to be the aggrieved party. After both sides got their says, Russia was found guilty in violating the Energy Charter Treaty as it expropriated the Yukos assets. Thus, the tribunal ruled that the defendant will award the Group Menatep Limited under just half of a $114-billion claim.
The losing party usually covers legal costs in most cases. This one is no exception. The Yukos case will cost the Russians $65 million. According to a source familiar with the situation, the decision was unanimous; there were three arbiters: one was invited by the Russian party, the second was called on by GML, and the third was appointed by the judge. The Energy Charter declaration was signed in 1991; 3 years later the legally-binding treaty containing all the legal norms related to energy sector investing was endorsed.
GML accuses Russia of violating the article 45 of the Treaty that protects investors from expropriation by the government. However, there is a slight hitch: Russia did not ratify the Treaty. Despite that fact, The Hague decided the former Yukos shareholders have right to defend their interests referring to the document.
The case bears no relation to Mikhail Khodorkovky. GML represent interests of Leonid Nevzlin, Vladimir Dubov and others.
