Legal battles

Hague Court Disallows Ruling for Russia to Pay $50Bln to Yukos Stakeholders

The Hague Court has disallowed an earlier ruling by a court of arbitration obliging Russia to pay $50 billion to the former stakeholders of the defunct Yukos oil company as the court was not in line with its competency, according to a statement on the Dutch judicial system's website.

"The Hague District Court has quashed six arbitration awards (three interim awards and three final awards) of the Permanent Court of Arbitration in The Hague. In the final awards, the Russian Federation was ordered to pay damages amounting to 50 billion US dollars to Yukos Universal Limited, Hulley Enterprises Limited and Veteran Petroleum Limited. The three parties had been shareholders of the bankrupted Russian oil company Yukos. With the arbitration awards quashed, the Russian Federation is no longer liable for paying compensation to these parties," the statement read.

In July 2014, the Permanent Court of Arbitration ruled unanimously to award the former shareholders of the now defunct Yukos company $50 billion to be paid by the Russian Federation.