Dutch Court Scraps Record $50bn Payout Over Bankrupt Oil Giant

The Dutch Supreme Court has cancelled a $50bn arbitration award Russia was ordered to pay former shareholders of bankrupted Russian oil giant Yukos, throwing the case back for appeal and likely years more litigation.

Yukos collapsed in 2006 after oil tycoon Mikhail Khodorkovsky fell out with Russian President Vladimir Putin and the government began demanding billions of dollars in alleged back taxes that ultimately resulted in it being seized by the state. Critics said the move was an attempt to silence Khodorkovsky, a vocal opponent of Putin.

Friday’s ruling came after seven years of legal wrangling in Dutch courts following an arbitration tribunal ruling in 2014 that found Moscow had violated its international obligations by taking actions designed to bankrupt Yukos, formerly Russia’s largest oil company.

The Supreme Court’s decision marks the second time that Dutch judges have set aside the arbitration award after The Hague District Court dismissed it in 2016, only to see it reimposed on appeal.