That means that the judgment rendered on July 31, 2014 ordering Russia to pay Yukos shareholders about 1,9 billion euros becomes final. Ministry of Justice of the Russian Federation expressed extreme disagreement with the court’s decision. The ruling in question concerns the tax and enforcement proceedings initiated in 2004 against the Russian oil company Yukos, which resulted in its liquidation in 2007.
In September 2011, the ECHR held that there were a violation of Article 6 (right to a fair trial) of the European Convention on Human Rights (Convention) with regard to the tax assessment proceedings for the year 2000 against Yukos and a violation of Article 1 of Protocol 1 to the Convention (protection of property). Yukos shareholders demanded compensation over 81 billion euros, but the court postponed rendering the judgment on the question of just satisfaction. The ECHR decided last July that Russia was to pay the shareholders of Yukos “as they had stood at the time of the company’s liquidation and, if applicable, their legal successors and heirs” over 1.8 billion euros as pecuniary damage and 300,000 euros as costs and expenses to the Yukos International Foundation. It had been incorporated in the Netherlands by Yukos with an intent to distribute to its shareholders any funds it would receive. Earlier, the Permanent Court of Arbitration in The Hague published a decision on the action filed by former Yukos shareholders awarding them damages compensation in the amount of $50 billion. Russia readily announced its intention to challenge the decision.
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