The Hague District Court has quashed the $50 Billion arbitration awards against the Russian Federation.
In 2014, the Russian Federation was ordered to pay damages amounting to 50 billion USD to Yukos Universal Limited, Hulley Enterprises Limited and Veteran Petroleum Limited as a result of three investment arbitration proceedings brought before the Permanent Court of Arbitration under the Energy Charter Treaty (ECT). Since the arbitrations were conducted in The Hague, the District Court of The Hague was competent to rule on the challenge of the awards. The decision can be appealed.
The Hague District Court reversed the awards on the grounds that the arbitral tribunals lacked jurisdiction since the Russian Federation had signed the Energy Charter Treaty, but never ratified it. The court considered that the wording of Article 45 of the ECT requires to consider whether or not the content of each separate article of the ECT is contrary to the constitution or other legislation of the state involved.
