Former Yukos shareholders begin proceedings against Russian government

Gazeta.ru, 18.11.2008

Former Yukos shareholders have brought a $50 billion lawsuit against the Russian government. The London Times reports that this is the biggest commercial claim ever submitted in court.

GML (former Group Menatep) asserts that Yukos, once the largest Russian oil company, was unlawfully taken over by the Kremlin during an organised political campaign.

In submitting its lawsuit GML refers to the Energy Charter treaty which Russia expressed a wish to join but did not ratify.

The proceedings are being held in camera in one of the arbitration courts in the Hague. The court must decide whether the Energy Charter treaty applies to Russia.

If the court decides in favour of GML new hearings will be scheduled. Legal specialists say that if that happens a precedent will be established and Russia and other countries that have not ratified the Energy Charter treaty may find themselves defendants in similar lawsuits from investors.