Support The Moscow Times!

Russia Ordered to Pay $50Bln to Yukos Shareholders

Following a ruling in the Netherlands, Russia says it will appeal the decision in the Dutch Supreme Court.

Yukos was controlled by Mikhail Khodorkovsky until his arrest in 2003. Vedomosti / TASS

A Dutch appeals court Tuesday ordered that the Russian government pay $50 billion to former shareholders in the defunct Russian oil giant Yukos.

The decision overturned a previous ruling from a lower court. Immediately after the ruling, Russian officials said they would appeal the decision, lining up a final showdown over the multi-billion dollar dispute at The Netherlands’ Supreme Court.

In April 2016, The Hague's District Court had overturned a decision by the Permanent Court of Arbitration which ordered the Russian state to compensate shareholders in the company once owned by fallen oligarch Mikhail Khodorkovsky. Tuesday’s decision reinstates the original ruling, which was laid down in 2014, following complaints first lodged in 2005.

The case was brought by GML, a pension fund representing former Yukos employees which was the majority shareholder in Yukos before the firm’s assets were seized by Russian authorities and auctioned off to Russia’s state-owned oil giant Rosneft in 2003-04. It was widely seen as a politically-motivated takeover by the Kremlin targeting Khodorkovsky. The mandated payout does not concern Khodorkovsky’s previous share in Yukos. 

In response to the verdict, a GML spokesperson said: “This is a victory for the rule of law. The independent courts of a democracy have shown their integrity and served justice. A brutal kleptocracy has been held to account.”

Reuters contributed reporting to this article.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more