RBC: Russia disputed the claim of Yukos Capital because of the courier

Russia challenged a March 2022 motion by the former Yukos entity, Yukos Capital Limited, in the U.S. Court of the District of Columbia, on the grounds of improper delivery of court documents. The transfer of procedural documents to the Russian side by courier delivery is “a violation of the sovereignty of the Russian Federation,” the Russian defense said. Yukos Capital wants the US court to recognize and enforce the decision of the International Arbitration on the payment of $2.63 billion by Russia, reports RBC.

According to the publication, on June 29, 2022, a “courier package” with court documents about the Yukos Capital lawsuit was delivered to the Ministry of Foreign Affairs of the Russian Federation. After that, the International Center for Legal Protection (ICLR), created by Russia to protect Yukos structures from foreign claims, and the Prosecutor General’s Office, which represents the interests of the Russian Federation in international affairs, began to “work tirelessly” to find competent lawyers, Andrei Kondakov, head of the ICLR, told the publication.

Last fall, the Russian side notified the United States that the package with court documents had not been delivered to Russia properly. “Any service of procedural documents on the territory of the Russian Federation can only be carried out by Russian courts at the request of a foreign court … Simply put, an attempt to hand over documents for the Russian Federation on its territory through a courier was a gross violation of the sovereignty of the Russian Federation,” RBC reports the words of Mr. Kondakov.

In July 2021, an international arbitration under the auspices of the Permanent Court of Arbitration in The Hague awarded $5 billion in compensation to Yukos Capital, including $2.63 billion in principal compensation. In August 2021, Russia accused the company of declassifying the court decision, as it was a violation of the confidentiality of the proceedings. Russia has declared its intention to protect its rights. October 10, 2022 Swiss Federal Court rejected Russia’s appeal and ordered Moscow to pay compensation to the former Yukos structure.

Yukos Capital initiated arbitration proceedings against Russia in 2013 seeking $13 billion in damages. The company stated that it issued loans to Yukos that were not repaid due to the bankruptcy and liquidation of the parent structure by decisions of the Russian authorities. Yukos enterprises Yuganskneftegaz and Samaraneftegaz borrowed $11.2 billion and $2.4 billion from Yukos Capital, respectively. The Russian authorities claimed that the funds belonged to the Yukos company and were used in illegal schemes to withdraw funds and evade taxes.

Erdni Kagaltynov