Dispute Settlement

In three longstanding Energy Charter Treaty arbitrations, the tribunal issued awards (615 pages each) worth $ 50.02 billion in damages in favour of Yukos investors:

  • Hulley v Russia: $ 39,971,834,360
  • Veteran v Russia: $ 8,203,032,751
  • Yukos v Russia: $ 1,846,000,687

The Russian Federation was found to be in breach of Article 13(1) of the ECT under which "Investments of Investors ... shall not be nationalised, expropriated or subjected to a measure or measures having effect equivalent to nationalisation or expropriation ...".

The tribunal (Yves Fortier, Charles Poncet and Stephen Schwebel) also ordered Russia to reimburse EUR 4,240,000 for the costs of the arbitration, and $ 60,000,000 for a proportion of the costs of legal representation and assistance in the arbitration proceedings to the investors.

Additionally, the tribunal ordered Russia that "if within 180 days of the issuance [of the awards] [Russia] fails to pay in full the amounts set forth ... above, post-award interest on any outstanding amount starting from 15 January 2015, compounded annually. Post-award interest shall be determined as the yield on 10-year U.S. treasury bonds as of 15 January 2015 and then the dates of compounding yearly thereafter."

The awards rendered on 18 July 2014 were made public today by the Permanent Court of Arbitration:

  • Yukos Universal Limited (Isle of Man) v The Russian Federation, Final Award
  • Hulley Enterprises Limited (Cyprus) v The Russian Federation, Final Award
  • Veteran Petroleum Limited (Cyprus) v The Russian Federation, Final Award