MOSCOW, April 1 (RAPSI, Vladimir Yaduta) – Russia’s state-owned oil producer Rosneft announced on Wednesday that it has reached an agreement with former shareholders of now defunct Yukos company to settle litigation in various jurisdictions.
In a statement on its website, Rosneft said that the deal that puts an end to litigation in Netherlands, England, Russia, USA, and other jurisdictions had been completed on March 31.
"In accordance with the conditions of the agreement the sides withdraw all mutual claims, stop all legal and other disputes, and are obliged not to lay claims on each other in the future due to the bankruptcy and dissolution of Yukos," according to Rosneft.
"The terms of the settlement are confidential. Yukos can confirm that the settlement applies to all jurisdictions. The settlement between Yukos and Rosneft has immediate effect," a representative for ex-Yukos shareholders, Claire Davidson, said in a statement.
"This is not a financial settlement. It provides certainty of ownership of important structures and assets for the Dutch entities run by the former Yukos management. Cash proceeds already received from past litigation with Rosneft are unaffected by this settlement," she told RAPSI.
At the same time, proceedings over multi-billion-dollar award against Russia under the Energy Charter Treaty as well as litigation brought by former shareholders of Yukos against Russia in the European Court of Human Rights (ECHR) will continue.
A tribunal for the Hague Permanent Court of Arbitration announced last July that it had issued awards in three cases filed against Russia. The tribunal ordered that Russia pay Yukos Universal Limited (Isle of Man) over $1.8 billion in damages. Hulley Enterprises Limited (Cyprus) was awarded about $40 billion, and Veteran Petroleum Limited (Cyprus) got over $8 billion. Russian authorities moved to set aside the ruling and turned to the District Court in The Hague.
The ECHR handed down last July a judgment ordering Russia to pay ex-Yukos shareholders about 1,9 billion euros. The judgment became final in December after Russia’s request for referral of the case to the Grand Chamber had been rejected. Russia is expected to submit a detailed plan for distribution of the award in co-operation with the Committee of Ministers by July 15.