The federal court in the District of Columbia has declined Russia’s request to pause the lawsuit in which successors of the former Yukos shareholders seek damages amounting to 50 billion dollars from the Russian Federation. This update is drawn from the court’s electronic records system as cited by TASS.
The motion to stay the proceedings was filed late last year, with Moscow arguing that the case should be put on hold until the Amsterdam Court of Appeal issues its ruling in a related Yukos matter.
A United States court, however, rejected the request for adjournment, noting that further delays could create significant complications for the holders of the Yukos claims.
The ruling also warned that continuing suspensions might render Russian assets inaccessible in light of existing sanctions imposed on Moscow.
In preparation for potential fund recovery, Russia has deposited seven billion dollars with the court to cover any eventual reclaiming of assets.
Background to the Yukos dispute dates back to December 2, 2021, when the U.S. Court of Appeals denied the former Yukos shareholders from broadening the case. The defendants, represented by Russia, prevailed in their bid to revisit the lower court’s decision, and the petition to reconsider was rejected. The case had previously been paused as part of this chronology. The court decision reiterated that the petition had been accepted and the case closed may reflect the formal disposition at that stage.
From its origins in 2003, Yukos stood as Russia’s leading oil company, born in the post-Soviet era. Co-owner and former chairman Mikhail Khodorkovsky faced fraud charges that led to his conviction, a development that preceded the company’s bankruptcy and the later sale of Yukos’ assets by the bankruptcy administrator to satisfy outstanding obligations.
The group of major Yukos shareholders, organized under the financial umbrella of GML, sought compensation for losses sustained during the company’s collapse. In 2007 they pursued a case at the Permanent Court of Arbitration in The Hague, alleging that the Russian government had confiscated Yukos assets. In 2014, the arbitration tribunal delivered a landmark verdict, ordering Moscow to pay a total of 50 billion dollars for breaches of international obligations tied to the energy contract and the company’s bankruptcy framework.
The central argument advanced by Moscow contends that the former Yukos owners engaged in a range of violations under the control of the company, including the illegal transfer of assets abroad, allegations of money laundering, and other illicit activities. Despite these assertions, a high-level review in April 2021 recommended that Russia’s appeal be denied, keeping the legal path pursued by the shareholders intact and continuing to shape the evolving posture of the dispute. (Source attribution: TASS; U.S. judiciary records; The Hague arbitration materials)