Russian Constitutional Court on Yukos ECHR judgment

On 19 January 2017, the Russian Constitutional Court rendered a highly awaited decision on the enforcement of an ECHR judgment in the Yukos case. In 2014, the ECHR awarded over 2 billion USD to the shareholders of Yukos. The Court found that enforcement of said judgment was not compatible with the Russian Constitution. In particular, it held that the ECHR’s finding relating to retroactrive taxation disregarded previous decisions of the Constitutional Court which allowed such taxation when necessary to fight against large-scale tax fraud. The Court ultimately found the Government’s actions were necessary and justified.

The Constitutional Court however allowed the Russian Federation to pay some of the affected shareholders based on good will and from the proceeds of Yukos’s property, once the company has paid its debts to its debtors (which include the Russian Federation).

More information can be found via these links: Sputnik News  CIS Arbitration  

The decision is available online in Russian: Link