Swedish Court of Appeals ruled on the case of Yukos in Russia’s favor – Sight

Swedish Court of Appeals acknowledged that the Stockholm arbitration had no jurisdiction to recover from the Russian compensation for the expropriation of Yukos at the suit of Spanish investment funds in 2012; According to lawyers, it strengthens Russia’s position in challenging the decisions of the Hague arbitration at $ 50 billion.

Swedish Court of Appeals granted the appeal of Russia in the case of Spanish investment funds are the holders of American depositary receipts for shares in Yukos. Appeal recognized that the Arbitration Institute of the Stockholm Chamber of Commerce, in July 2012, to satisfy the claim and to recover funds from Russia $ 2 million and interest was no jurisdiction to consider the dispute, writes “Kommersant”.

«Appeal ruling strengthens the position of Russia in the affairs of the abolition of the decisions of the Hague arbitration, awarded $ 50 billion of ex-Yukos shareholders»

In 2007, after the recognition of Yukos bankrupt and sell its assets seven Spanish funds sued the Stockholm arbitration, referring to the expropriation of the oil company and the government demanding compensation for their investment. Jurisdiction of the dispute was justified by the bilateral agreement between Spain and the Soviet Union for the Protection and Promotion of Investments Act, 1990. Arbitration accepted the suit of the four funds and recognized its jurisdiction in the dispute. Russia challenged it in the arbitration court, and then in the District Court of Stockholm, but the success could be achieved only on appeal.

According to the Swedish Court of Appeals, a bilateral agreement allows arbitration in Stockholm to consider only disputes over the amount and manner of payment of compensation and other issues (the fact of investment and expropriation of the company) Spanish-Soviet agreement is not covered on the basis of its literal interpretation. Meanwhile, even the fact of investments in the Russian economy, according to lawyers, is rather controversial, since the Spanish funds are not acquired Yukos, but only of ADR on them at Deutsche Bank.

The decision of the Court of Appeal can be appealed to the Supreme Court of Sweden, until 15 February. “After its entry into force, Russia is entitled to demand cancellation of the decision of the Stockholm arbitration on the compensation in favor of the Spanish funds,” – says the Secretary General of the Arbitration Association of Roman Zykov.

In addition, according to him, appeal the decision strengthens the position of the Russian side in matters of annulment of decisions of the Hague arbitration, awarded $ 50 billion of ex-Yukos shareholders. “Since the Hague decision referred to the arbitration award in Stockholm, Russia can dispute these arguments, relying on the decision of the Court of Appeal in Sweden” – indicates Zykov.

However, Andrei Panov of the law firm Norton Rose Fulbright notes that the Dutch court, which complained of Russia “can not review the decision of the Hague arbitration on the merits, so even if one of the evidence disappear, it does not mean that the decision of the arbitration It will be canceled. ”

«The decision of the Swedish appeal shows that the active position of the state to protect its interest bearing fruit. Clearly, this is expensive and not fast, but there is a chance “, – stressed Andrei Panov. According to him, it is evidenced by the fact that “in Europe, there is no general bias towards Russia and that European courts are willing to correct the mistakes of their arbitration.”

Roman Zykov said that this is not the first decision of the state courts of Sweden in support of the position of the Russian side. Only six months ago, in July 2015, the same Swedish Court of Appeal overturned the decision of the Stockholm arbitration to recover from the “Tyumenneftegaz” (from 2013 part of the structure of Rosneft) 173 million dollars in favor of the American First National Petroleum, considering that the arbitral tribunal has gone beyond the limits of their competence.

We also recall the former Yukos shareholders filed a claim against the arrest of Russian property in the courts of the United States, France, Britain and Germany after the Hague Arbitration in July 2014 ordered Russia to pay them compensation in the amount of 50 billion dollars ( instead of the requested 114 billion).

Later, the European Court of Human Rights (ECHR) has also ruled that Russia must pay former shareholders of Yukos’s 1.86 billion euros in compensation for their complaints considered back in 2011, and 300 thousand. Euro court costs.