Constitutional Court allows Russia not to pay $ 57 billion to former Yukos shareholders

On December 24, the Russian Constitutional Court adopted a ruling ( .pdf ), which effectively allowed the government not to comply with the decision of the international arbitration in The Hague on the payment of $ 57 billion to the former shareholders of the Yukos oil company. The BBC Russian Service drew attention to this.

The Constitutional Court has prepared an explanation for its 2012 ruling ( .pdf ), in which it explicitly allowed the Russian authorities to temporarily apply international agreements that have not been ratified and have not entered into force. In particular, the decision of the Constitutional Court applied to the Energy Charter Treaty (ECT), on the basis of which the international arbitration in The Hague in 2014 collected from Russia in favor of the former shareholders of Yukos $ 50 billion (now the amount of debt exceeds 57 billion).

ON THE DECISION OF THE COURT IN THE HAGUE

In its explanation, the court clarified that the 2012 decision should not be interpreted as allowing disputes to be referred to international arbitration. According to the judges, such disputes should be considered in Russia, and only with the permission of the legislator – in foreign and international jurisdictions.

In addition, the court believes that Russia can temporarily apply an international treaty “in part”, and the government’s consent to this does not apply to “the provisions of this international treaty providing for the transfer of disputes between the Russian Federation and foreign investors to international arbitration.”

In essence, this means that the Constitutional Court, 26 years after the signing of the ECT, recognized the consideration of the dispute in The Hague over the Yukos case as unconstitutional.

(C)MEDUZA 2020

3 comments

  • The measure taken by the mafiosi as described in the article above is a lame attempt to shirk its duties to the Hague court ruling earlier this year and mafia land’s failed appeal underlines the obligation that it must now fulfill.

    “While former Yukos shareholders are unlikely to be able to collect the funds in Russia, the country and state-controlled oil producer Rosneft may face possible freezes of their assets and stakes outside the country if the appeal to the Supreme Court fails.”
    https://www.upstreamonline.com/politics/dutch-court-reinstates-55-billion-yukos-award-against-russia/2-1-758505

    This means that mafia land’s “Constitutional Court” ruling is a futile one. Mafia land will pay, in one way or another.

    Liked by 5 people

  • In addition, the court believes that Russia can temporarily apply an international treaty “in part”, and the government’s consent to this does not apply to “the provisions of this international treaty providing for the transfer of disputes between the Russian Federation and foreign investors to international arbitration.”

    Meaning, Muscovy can choose which parts of any agreement to abide by. Well Muscovy have a soon to be terminated pipeline worth $10 billion, seize that for starters, then seize everything else that belongs to Russia. Any planes landing in Europe should be seized, any ships docking in European ports should be seized, soon the Hague will have their $57 billion.

    Liked by 5 people

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