Stockholm court dismisses Russian claim over Yukos investment arbitration
MOSCOW, September 12 (RAPSI, Vladimir Yaduta) – The Stockholm District Court on Thursday issued a judgment in a lawsuit brought by Russian authorities over arbitration proceedings commenced by four Spanish investment funds which had held Yukos American Depository Receipts (ADRs).
The court held that of the Arbitration Institute of the Stockholm Chamber of Commerce funds had the authority to resolve the dispute between Russia and the four Spanish funds.
The funds initiated an arbitration process in accordance with an investment protection agreement between Spain and Russia after their ADRs had become worthless as a result of Yukos bankruptcy. They sought compensation from Russia for their investments.
Russia claimed that the arbitration panel did not have the authority to examine whether the assets owned by Yukos were expropriated and initiated proceedings in the Stockholm District Court.
In the meantime, the arbitration panel resolved the dispute and obligated Russia to pay a certain amount of compensation to the funds.
The District Court dismissed the lawsuit brought by Russia and ruled that its authrities pay legal expenses of the Spanish funds.
The Quasar de Valores et al. v. Russian Federation case is one of three investment treaty arbitrations where Russia has been found liable, according to Covington & Burling law firm, which represents minority Yukos shareholders.
Notably, in July an arbitration panel sitting at the Permanent Court of Arbitration in The Hague awarded Yukos majority shareholders $50 billion. The panel held that Russia breached its international obligations under the Energy Charter Treaty (ECT) by destroying Yukos and seizing its assets.