Yukos Oil Company Verdict: European Court of Human Rights Decision to be Released on 20 September 2011
,Strasbourg
The European Court of Human Rights (ECtHR) announced today that the judgment in the application brought by the former management of YUKOS Oil Company (YUKOS) will be given on Tuesday 20 September 2011.
This judgment comes over seven years after the initial application in 2004 and well over a year since the ECtHR held a hearing on the merits in Strasbourg in March 2010.
The application was filed by the management of YUKOS Oil Company shortly after the Russian authorities began their attacks on YUKOS. YUKOS was ultimately destroyed by the Russian government’s illegal actions, and most of its assets were transferred to the Russian state oil company, Rosneft. YUKOS was, at the time, Russia’s best governed, most transparent, fastest-growing and largest oil company.
YUKOS argued that the Russian Federation Tax Ministry and the Russian authorities created huge unfounded tax liabilities against the company, which were doubled with fines and penalty interest. At the same time the authorities froze all of the company’s assets, which were worth many times the alleged tax liabilities.
Despite the freezing orders, which prevented YUKOS from liquidating assets to pay, the Ministry still demanded immediate payment and raised further tax assessments, secured once again with more freezing orders despite all assets already being frozen, thus rendering YUKOS unable to make any such payments.
Throughout this time, the management of YUKOS was unable to get a fair judicial hearing in Russia in accordance with the rule of law. They accordingly turned to the ECtHR.
The initial application to the ECtHR tried to prevent the expropriation of all of the assets of YUKOS, including the company’s crown jewel, Yuganskneftegaz.
YUKOS’ application contends that the tax re-assessments were retrospective, unforeseeable, unlawful, arbitrary and selectively applied.
YUKOS’ application to the European Court of Human Rights seeks redress for the violations of the company’s Convention rights, and just satisfaction from the Russian Federation, on behalf of all YUKOS stakeholders, in excess of $100 billion. The application has been maintained by former management and their lawyers on behalf of YUKOS.
In prioritising the case in 2004, declaring the application admissible in 2007 and undertaking the hearing in March 2010, the ECtHR recognised that YUKOS had exhausted all legal options in Russia, as is required by the ECtHR prior to an application.
YUKOS will make formal statements following an assessment of the ruling on 20 September 2011.
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For further information please contact Claire Davidson on + 44 7767 351 433 or email her on cdavidson@gardantcommunications.com
Notes to editors:
- For further information on Yukos’ case in the ECtHR, please visit www.YukosECHR.com
- For further information on Yukos’ case in the ECtHR in Russian, please visit www.Yukos-ECHR-Claim.com