28 Jul Yukos Shareholder Wins $50 Billion Arbitration Award Against Russia (Yes, that’s Billion With a “B”)
Some lawyers at Shearmen & Sterling are no doubt celebrating what may be the largest single arbitration award in history (text of award here). Their client, a shareholder of the expropriated Russian oil company Yukos, has won a $50 billion award against Russia in an investor-state arbitration (seated at the Permanent Court of Arbitration) under the Energy Charter Treaty. Michael Goldhaber at the American Lawyer has the first and fullest coverage of this historic award.
There are lots of legal battles ahead. Enforcement is going to be challenging, as it always is against sovereign states. And the award has some very interesting observations on legal issues such as the “unclean hands” doctrine under international law. But for now, this is quite a victory for the plaintiffs to savor and it is already taking a toll on Russia’s stock market. (And it is a rough few months for the folks over at Cleary Gottlieb, who are also representing Argentina in its unsuccessful battle with its holdout bondholders).