Jens Siegert: Interview with Zurich Tages-Anzeiger on Yukos ruling by Permanent Court of Arbitration in The Hague

posted 3 Sep 2014, 14:11 by Rights in Russia   [ updated 3 Sep 2014, 14:18 ]
28 July 2014

Jens Siegert

Source: Boell Foundation Russia Blog

In a ruling published today, the Permanent Court of Arbitration in The Hague ordered the Russian state to pay around USD 50 billion in compensation to former shareholders of the Russian oil concern Yukos, which was dissolved in 2004. They had appealed for compensation from the government on the grounds that the breaking up of the company formerly headed by the government critic Mikhail Khodorkovsky had lost them a great deal of money. Khodorkovsky himself has welcomed the ruling, but emphasised that he himself did not submit a claim and did not intend to derive any material benefits from the ruling. In an interview with the Zurich Tages-Anzeiger, I made a first attempt at analysing the consequences of the ruling.

Tages-Anzeiger: Mr Siegert, Russia has been ordered to pay a huge sum of compensation in the Yukos case. What does this ruling mean for the Kremlin?

Jens Siegert: Alarm bells will be ringing even louder among the political classes. The Kremlin is already under pressure as a result of the US and EU sanctions, and a further penalty of over USD 50 billion would be a harsh blow. [Read more]

Translated by Joanne Reynolds