A Dutch appeals court overturned the annulment of a $50 billion (€46 billion) award to shareholders on Tuesday in the now defunct Russian oil giant Yukos, more than a decade after its assets came under the control of the Kremlin.
The original decision by the Hague-based Permanent Court of Arbitration was much like Tuesday’s ruling but this was then overturned, in favor of the Kremlin. And now, once again, the Appeals Court in The Hague have come down on the side of the shareholders, reverting back to its original decision that would have awarded shareholders billions of dollars after Yukos Oil went bankrupt in 2006.
This insolvency occured after Yukos’ former owner, Mikhail Khodorkovsky, who currently lives in exile in London, fell out with President Vladimir Putin and the Russian government began demanding billions of dollars in tax claims that ultimately resulted in the oil company being expropriated by the state.
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Russian opposition figure Mikhail Khodorkovsky, the former owner of the Yukos Oil Company that was put out of business in 2006
“The Appeals Court in The Hague decided today that a previous ruling in favor of the Russian Federation was incorrect,” the court said in a statement, adding the original $50 billion awarded “is in force again.”
Andrej Kondakow, head of the Russian International Center for Legal Protection (ICLP), which represents the interests of Russia during the trial, said the ruling was “surprising.” He told DW that the government was “disappointed that the court did not take into account the perfectly clear arguments of the Russian Federation.”
Jonathan Hill, a spokesman for Group Menatep Limited (GML), which represents former Yukos majority shareholders, told DW: “The most important thing about today’s ruling is that it reinstates in full the award of 2014. We were very confident in our legal arguments and we were very confident that in the end truth and rule of law will win the day.”
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Khodorkovsky: Putin’s most famous enemy
Time to move on
“The rules were applied harder than usual on me,” Khodorkovsky said at a press conference this past Sunday in Berlin. The former oil tycoon was in prison for the past ten years. When asked of his future plans, he replied with a twinkle in his eye: “I regained my freedom just 36 hours ago. I haven’t had time to make any big plans.”
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Khodorkovsky: Putin’s most famous enemy
Successful career
In 1989, Khodorkovsky took the chair of the Commercial Innovation Bank for scientific and technological progress, which was one of modern Russia’s first private banks. In 1997, he was CEO of Yukos, one of Russia’s largest oil companies, a job that made him a billionaire – but not without controversy.
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Khodorkovsky: Putin’s most famous enemy
Opposing positions
Along with his wealth, his power and influence grew as well: Khodorkovsky publicly criticized corruption in the country. He financed liberal parties and opposition candidates – much to the displeasure of then President Vladimir Putin. In February 2003, he and Khodorkovsky had a heated televised debate. A few months later, he was arrested.
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Khodorkovsky: Putin’s most famous enemy
Behind bars
In June 2004, the first trial of Khodorkovsky and his business partner Platon Lebedev began. Both were sentenced to nine years behind bars in a penal colony for serious fraud and criminal conspiracy . An appeal later saw the sentence reduced to eight years.
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Khodorkovsky: Putin’s most famous enemy
The empire is crushed
Khodorkovsky’s empire was effectively destroyed: Yukos was sold little by little and eventually deleted from the commercial register of Russia. Putin adviser Igor Sechin – now head of Rosneft, which bought parts of Yukos – orchestrated the forced sale. Khodorkovsky disappeared in the custody of Russian authorities.
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Khodorkovsky: Putin’s most famous enemy
Hunger strike in no-man’s-land
Khodorkovsky was first moved to a prison camp in Krasnokamensk, close to Russia’s border with China and Mongolia. In December 2006, he was transferred to a prison in Siberia, where he spent his time working, reading and writing. In response to a fellow prisoner not being given urgent medical treatment, Khodorkovsky went on a hunger strike. After 11 days, he was successful.
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Khodorkovsky: Putin’s most famous enemy
Khodorkovsky the hero
The second Khodorkovsky trial, in 2010, was accompanied by demonstrations. His followers protested the initial verdict as politically motivated and fought for his release. But Putin, then prime minister, remained obstinate. Out of the blue, in December 2013, Khodorkovsky was pardoned and released with immediate effect.
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Khodorkovsky: Putin’s most famous enemy
Covert diplomacy
After his release, Khodorkovsky arrived in Germany, where he was received by former Foreign Minister Hans-Dietrich Genscher. For two years, he had fought for the release – together with Khodorkovsky’s defense. He led numerous talks, met twice with President Putin and organized Khodorkovsky’s emigration to Germany – completely under the radar.
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Khodorkovsky: Putin’s most famous enemy
Everyone wants Khodorkovsky
The media interest was immense when Khodorkovsky’s whereabouts were made public. TV teams and journalists in the country interrupted their Christmas holidays to cover the story. But Khodorkovsky quickly withdrew to Berlin’s high security Adlon Hotel to meet his parents and his eldest son Pavel. On Sunday (22.12.13), he made his first public appearance.
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Khodorkovsky: Putin’s most famous enemy
Leaving the past behind
Less political – this is Khodorkovsky’s new image. At the press conference in Berlin, he said he did not intend to finance the Russian opposition. He also voiced no desire to enter Russian political life.
The Kremlin was quick to respond to the Dutch court ruling by saying it would appeal as Andrej Kondakow confirmed: “We will continue to defend our interests and will of course appeal to the Supreme Court of the Netherlands in good time – we have three months to do so.”
jsi/ng (dpa, AFP, Reuters)
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Article source: https://www.dw.com/en/dutch-court-backs-50-billion-yukos-shareholder-claim-against-kremlin/a-52421457?maca=en-rss-en-all-1573-rdf