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.”