Hague: Russia to Pay $50B in Yukos Case

    Derricks at Yuganskneftegaz oil processing facility at Mamontovskoye oilfield outside the Siberian town of Nefteyugansk.  Derricks stand at Yuganskneftegaz oil processing facility, the core unit of oil company YUKOS at Mamontovskoye oilfield outside the Siberian town of Nefteyugansk, December 18, 2004. Russia looks ready to sell the key production unit of beleaguered oil group YUKOS on Sunday and put it back in state hands after almost a decade under private management. REUTERS/Sergei Karpukhin - RTRIJL7

    Sergei Karpukhin/Reuters

    If sanctions don’t cripple the Russian economy, this award settlement just might do it. On Monday, the Hague ordered Russia to pay $50 billion to shareholders of the now-defunct Yukos oil company in what is reportedly the largest arbitration award ever. The court said Russia must pay shareholders in GML to compensate them for when the Kremlin seized Yukos, which was formerly controlled by Mikhail Khodorkovsky. While the amount is less than half of GML’s $114 billion claim, the compensation will be a big hit for an already-struggling Russian economy. However, Foreign Minister Sergei Lavrov said Moscow will probably appeal the decision, thus avoiding paying up any time in the near future. Yukos’ shareholders allege that Russia unlawfully deprived them of its possessions through bogus taxes and the auction of its main asset.

    Read it at Reuters