13:50 Apr. 20, 2016
Dutch court says the previous panel of judges had no right to review the dispute
Russia won the fight to overturn a USD 50 billion arbitration ruling after a Dutch court decided that the panel of judges who issued the unprecedented award to the former owners of Yukos Oil Co. had no authority to examine the dispute - Bloomberg reports.
The decision of the court in the Hague not only cancelled the arbitration court decision but also stated the previous tribunal misinterpreted a never-ratified treaty that Russia signed.
The newly approved verdict means that Russia has the right to claim to unblock its foreign accounts and assets. They were temporarily blocked while the holding company GML Ltd., held by four Yukos ex-shareholders, struggled for compensation. For now, they say they will appeal against the latest court decision.
In 2007 once the biggest Russian oil company Yukos went bankrupt and its assets were sold out. Afterwards, seven Spanish investment funds filed a lawsuit with the Stockholm arbitration court, claiming Russia is obliged to compensate for their investments following the alleged expropriation of Yukos by the Russian state.
In 2014, the Hague Permanent Court of Arbitration awarded 1 billion U.S. dollars to shareholders of Yukos. Following Russia's refusal to fulfil the verdict, France and Belgium arrested nearly the same amount of Russian assets.