International Trade

Permanent Court of Arbitration Issues Award For Investors In Yukos, Orders Russia To Pay $50 Billion

 THE HAGUE, Netherlands — (Mealey’s) A tribunal for the Permanent Court of Arbitration yesterday announced that it has issued awards in three arbitration cases filed against the Russian Federation in relation to investments made in OAO Yukos Oil Co. (Yukos), awarding the investors more than $50 billion (Yukos Universal Limited [Isle of Man] v. The Russian Federation, No. AA 227, PCA).


In 2005, Hulley Enterprises Limited (Cyprus), Yukos Universal Limited (Isle of Man) and Veteran Petroleum Limited (Cyprus) commenced arbitration against Russia before the PCA. The claimants are former shareholders of Yukos.

The claimants alleged that Russia expropriated and failed to protect their investment in Yukos, causing “enormous losses.”  The parties agreed that the cases would be heard together before identical tribunals.

In the final awards, the tribunal unanimously found that Russia expropriated the claimants’ investments in Yukos, breaching Article 13(1) of the Energy Charter Treaty. The tribunal found that the claimants were partially at fault and reduced the amount of damages.


The tribunal ordered that Russia pay Yukos Universal $1,846,000,687 in damages, plus costs and interest, pay Hulley $39,971,834,360 in damages, plus costs and interest, and pay Veteran Petroleum $8,203,032,751.

The tribunal ordered that Russia pay the amounts within 180 days of the award.

The case was heard by Chairman Judge L. Yves Fortier, Dr. Charles Poncet and Judge Stephen M. Schwebel.


The claimants are represented by Professor Emmanuel Gaillard, Dr. Yas Banifatemi and Jennifer Younan of Shearman & Sterling in Paris.

Russia is represented by Dr. Claudia Annacker, Lawrence B. Friedman, David G. Sabel, Matthew D. Slater, William B. McGurn and J. Cameron Murphy of Cleary Gottlieb Steen & Hamilton in Paris, Michael S. Goldberg of Baker Botts in Houston and  Jay L. Alexander, Dr. Johannes Koepp and Alejandro A. Escobar of Baker Botts in London.

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