Swedish Yukos Ruling Unlikely To Affect DC Court Case

Jan 29, 2016

A Swedish appellate court handed Russia a victory when it ruled that a Stockholm tribunal lacked jurisdiction to hear expropriation claims by shareholders of the now defunct Yukos Oil Co.

The Svea court also indicated that the judgment could affect Russia’s other claims, indicating in the portion of the ruling ordering the Spanish claimants in the Quasar case to pay Russia's costs that the outcome of the case "may also be assumed to be important for the federation outside the current proceedings." 

That could be particularly true in The Hague, according to Roman Zykov, the Russian Arbitration Association's secretary general. Russia is currently asking the District Court of the Hague to set aside the PCA tribunal's $50 billion award, arguing in part that the tribunal was prejudiced.

Russia told the Hague court in its November 2014 petition that the tribunal based many of its rulings on its own speculation as to what the federation did and that its erroneous holding that taxes assessed against Yukos had been improper.

Coupled with another ruling by the Svea court in 2013 setting aside a Yukos-related investment treaty award issued to the investment firm RosInvestCo UK Ltd. for lack of jurisdiction, the Svea court's Quasar decision could comprise part of the federation's arguments in that court, comments Zykov to www.law360.com.

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