MOSCOW, July 26 - RAPSI. The Arbitration Institute of the Stockholm Chamber of Commerce today ordered Russia to compensate a group of Spanish investors for losses they suffered when Yukos Oil was nationalized in 2007. Shortly after the decision was released, RAPSI spoke with Marney Cheek, the Covington & Burling LLP partner that represented the investors in the tribunal.

Cheek told RAPSI that she is satisfied with the tribunal’s decision to award her clients $2 million plus interest. In full, her clients — Spanish small-time minority shareholders — will receive $2.7 million. In full, the tribunal valued Yukos’ worth as of the November 2007 expropriation date at $62 billion. While this is less than initially sought, she believes that the award was both fair and highly significant.

As Cheek explained, “the way the tribunal valued the company is they looked at what Yukos shares would have been worth in November 2007 when the expropriation was complete. That’s when Yukos was struck from the corporate registry after the bankruptcy proceedings, and so based on the valuation of the shares in November 2007, the entire company would’ve been worth $62 billion. So if you look at the $62 billion figure, that in effect this award stands for the proposition that Russia owes Yukos shareholders a total of $62 billion plus interest.”

When asked whether she thought the ruling would inspire a wave of claims against Russia by former Yukos shareholders, she answered, “I wouldn’t be surprised. I think that the writing on the wall is clear and that Russia expropriated the company and they owe compensation to shareholders.”

Cheek remained confident when asked about the likelihood of Russia appealing the ruling, saying, “They have 90 days to decide whether to challenge it or not. We think it’s a very well-reasoned decision and they don’t have any basis to appeal.” She was equally confident about the likelihood that Russia would pay the shareholders, pointing to the country’s past cooperation with ECHR decisions compelling award payment.

When asked whether she or her firm plan to represent any other former Yukos shareholders in the wake of this ruling, Cheek declined to comment.

RAPSI has yet to obtain comments from Russian authorities.