Russia back at London court in long-running oil row

Russia was back in an English court today over its long-running battle with former shareholders of exiled oligarch Mikhail Khodorkovsky’s oil company, over a $50bn arbitration award dating back to 2014.

Former shareholders of OAO Yukos Oil Company, Hulley Enterprises, Veteran Petroleum and Yukos Universal were awarded over $50bn in compensation back in 2014 over allegations that the assets of Yukos had been unlawfully expropriated by Russia.

The arbitration awards were issued by the Permanent Court of Arbitration in July 2014.

Since then, the case turned into a long-running battle over immunity after Russian disputed jurisdiction on the basis that it had State Immunity.

While the former shareholders argued that the exception to State Immunity is applicable in this case, on the basis that Russia agreed to submit a dispute through the arbitration procedure.

By 2016, The Hague District Court, a court in Netherlands, set the Awards aside.

In light of that decision, the parties agreed that the English proceedings should be stayed.

However, in 2020, The Hague Court of Appeal, quashed The Hague District Court’s decision and reinstated the Awards.

The former shareholders went on to issue an application to lift the stay of the English proceedings, and in October 2022, Mr Justice Butcher agreed to do so .

The case went back to court again in 2023 over two preliminary issues arising from this dispute.

In November 2023, Mrs Justice Cockerill at the English High Court determined two preliminary issues in favour of the former shareholders of Yukos, paving the way for their attempt to enforce the $50bn awards against Russia in England.

Now the parties are back in front of judges today and tomorrow at the Court of Appeal as Russia seeks to overturn Mrs Justice Cockerill ruling.