MOSCOW, May 8 (RAPSI) – Arbitration proceedings initiated by Polish company PKN ORLEN against Yukos International UK B.V. (Yukos) over a stake sale in Mazeikiu Nafta (currently Orlen Lietuva), an oil refinery in Lithuania, have been concluded, all claims dismissed, the company’s press release from Yukos reads.

In 2006, Yukos sold its 53.7% stake in Mazeikiu Nafta to PKN ORLEN for $1.492 billion, with a sales agreement signed in Amsterdam. The deal was made after a New York bankruptcy court lifted the freeze on the sale of YUKOS’ foreign assets imposed at the request of the interim trustee of Yukos Russian operation.

In 2008, PKN ORLEN initiated arbitration proceedings in London demanding $250 million payment from Yukos, headquartered in the Netherlands, with interest and costs of proceedings.

The requested amount of $250 million was deposited in the escrow account, as a part of the payment for AB Mazeikiu Nafta shares in order to secure the potential claims of PKN ORLEN in respect to differences between some statements made by Yukos on 14 December 2006 with the actual state of the oil refinery.

At the time of the deal between Yukos and ORLEN, 40.66% stake in the refinary belonged to the Lithuanian government. Now PKN ORLEN owns 100% of Orlen Lietuva shares.

Yukos, once Russia's largest oil company, was declared bankrupt and its assets were taken over by Rosneft. Many in the West believe that the case was politically driven, although Moscow denies these charges.