Hague: Russia to Pay $50B in Yukos Case

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.