Yukos Universal Limited (Isle of Man) v The Russian Federation: Provisional Application of the ECT in the Yukos Case

2015 ◽  
Vol 30 (2) ◽  
pp. 293-302 ◽  
Author(s):  
T. Gazzini
Keyword(s):  
Russian Federation ◽  
Provisional Application ◽  
Isle Of Man ◽  
The Russian Federation

Hulley Enterprises Ltd. (Cyprus) v. Russian Federation, Yukos Universal Ltd. (Isle of Man) v. Russian Federation, Veteran Petroleum Ltd. (Cyprus) v. Russian Federation

2015 ◽  
Vol 109 (2) ◽  
pp. 387-393
Author(s):  
Chiara Giorgetti
Keyword(s):  
Russian Federation ◽  
Arbitral Tribunal ◽  
Russian Government ◽  
Isle Of Man ◽  
Arbitral Award ◽  
Energy Charter Treaty ◽  
Illegal Acts ◽  
The Russian Federation ◽  
Legal Costs

On July 18, 2014, the Arbitral Tribunal (Tribunal) constituted in accordance with Article 26 of the Energy Charter Treaty (ECT) and the 1976 UNCITRAL Arbitration Rules under the auspices of the Permanent Court of Arbitration issued its long-awaited final awards in the famous arbitral proceeding related to the demise of oil giant Yukos. The Tribunal held unanimously that a coordinated set of actions by the Russian government (including arrests, tax reassessments, fines, and the forced sale of Yukos) amounted to an indirect expropriation of Yukosin breach of Russia’s obligations under the ECT, and that Russia was liable to pay prompt, adequate, and effective compensation for that breach. The Tribunal concluded that Yukos’s claims were not barred by the company’s own illegal acts or because of the “carve-out” for taxation measures under Article 21 of the ECT. Instead, the Tribunal concluded that the claimants had contributed to the prejudice they suffered and it therefore reduced the awards and reimbursement for legal costs by 25 percent. Even accounting for this reduction, the composite final award is still, by far, the largest known arbitral award ever rendered. The Tribunal ordered the Russian Federation to pay damages totaling US$50,020,867,798, in addition to arbitral and legal costs. Post-award interest is due on any outstanding amounts of damages and costs not paid starting from January 15, 2015, and is to be compounded annually thereafter.

scholarly journals Provisional Application of Energy Treaties by the Russian Federation

Lex Russica ◽  
2021 ◽  
Vol 74 (2) ◽  
pp. 80-92
Author(s):  
O. V. Glikman
Keyword(s):  
International Law ◽  
Russian Federation ◽  
Legal Regulation ◽  
Economic Consequences ◽  
Special Role ◽  
Provisional Application ◽  
Energy Charter Treaty ◽  
The Status ◽  
The Russian Federation ◽  
Bilateral Treaties

International agreements are of particular importance in interstate energy cooperation. The application by the Russian Federation of the mechanism of temporary application of treaties in the field of energy requires a comprehensive analysis, taking into account the problems that have arisen in connection with the provisional application of the Energy Charter Treaty and subsequent amendments to Article 79 of the Constitution of the Russian Federation. The general and sectoral approaches to the provisional application of treaties that exist in Russian practice need to be improved.The paper analyzes and compares the norms of international law and Russian legislation regulating the provisionary application of treaties, the works of Russian scientists, which highlight the general problems of the provisional application of treaties by the Russian Federation, as well as the final provisions of treaties of the Russian Federation in the field of energy.The author identifies common gaps in the norms of Russian legislation regulating the provisional application of treaties, trends and problems of the provisional application of multilateral and bilateral treaties by the Russian Federation in various energy sectors.The author concludes that the new approach should be based on a restrictive approach to the use of the institute of provisional application of treaties regarding terms and types of treaties. The treaties to which a special restrictive approach should be applied are to include those that have significant financial and economic consequences, provide for expenditures or lost revenues of the budget of the Russian Federation, regulate taxes, duties, and the provision of state credit; agreements on the borders, delimitation of maritime spaces, the status or regime of individual territories; and agreements that provide for the mandatory jurisdiction of judicial and arbitration bodies.The continuous improvement of international legal regulation in the field of energy should be a separate state task, since, despite numerous skeptical assessments, international law plays a special role and will be of great importance in the regulation of international relations, including in the field of energy.

scholarly journals The Legal Regime of the Temporary Application of Protocols to Tax Agreements between Russia and Cyprus, Russia and Malta

Financial law ◽  
2020 ◽  
Vol 12 ◽  
pp. 38-41
Author(s):  
Inna A. Khavanova ◽  
Keyword(s):  
International Cooperation ◽  
Russian Federation ◽  
International Treaties ◽  
Legal Regime ◽  
Tax Treaties ◽  
Double Taxation ◽  
Provisional Application ◽  
The Russian Federation

Theoretical and practical aspects of provisional application of double taxation avoidance agreements are analysed in the article. The author analyses the conditions of provisional application of protocols on amendment of Russia’s tax treaties with Malta and with Cyprus of 2020. The Russian Federation as a rule resort to provisional application of international treaties only in exceptional cases when the treaty is of exceptional interest and there is a need in its “start” before its entering into force. The author draws attention to the fact that the provisional application of the treaty can be regulated both with indication on this condition in the treaty itself or with separate treaty. The author also provides examples from the practice of international cooperation into the tax sphere.

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