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A new argument which should strengthen Russia's position in the Yukos case is a ruling issued by the Swedish appeals court on January 18 that overturned an arbitration decision dated July 25, 2012 on recovering $2 million from Russia in favor of the seven Spanish-based Yukos shareholders, the Russian newspaper Vedomosti reported.
The appeals court acknowledged the fact that the Arbitration Institute of the Stockholm Chamber of Commerce had no authority to arbitrate the case.
In 2007, after the former oil company Yukos went bankrupt and its assets were sold out, seven Spanish investment funds filed a lawsuit with the Stockholm arbitration court, claiming that Russia is obliged to compensate for their investments following the alleged expropriation of Yukos by the Russian state. The jurisdiction over the dispute was acknowledged based on the bilateral investment treaty signed between Spain and the Soviet Union back in 1990. Russia challenged its competence in arbitration court.
Lawyers note that the ruling of the appeals court strengthens Russia's position in challenging the decisions of the Hague arbitration court that awarded $50 billion to shareholders in the former oil company.
In July 2014, the majority shareholders of Yukos won a historic arbitral award of $50 billion, based on the finding that the Russian Federation had violated international law by abusing its system of taxation to force the oil company out of business. Together, claimants Hulley Enterprises Ltd., Yukos Universal Ltd., and Veteran Petroleum Ltd. held 70% of Yukos' shares. Russia argues the arbitral tribunal has no jurisdiction to adjudicate the claim. In addition, according to the appeal, the applicants can not refer to that document as they are literally not investors: the actual owners of Yukos were Russian citizens whose investments were made through bogus companies in violation of the Russian legislation (Russian lawyers named 28 types of violations of the legislation by the Yukos management).
Since the Hague judgments were based on the Stockholm arbitration decision, Russia may challenge these conclusions, with regard to the ruling from the Swedish appeals court, it is noted.