Browder: YUKOS’ Lawyers Acquire ‘Huge Weapon’
William Browder, of Hermitage Capital Management, believes that YUKOS' lawyers have acquired a "huge weapon" in their battle with Rosneft, the state-owned oil company that acquired its former rival's assets three years ago.
Browder's comments relate to the news that YUKOS' lawyers have obtained injunctions in the British and US courts that will make it difficult for Rosneft to trade with either country. The injunctions are in support of a judgment against Rosneft in the Dutch courts which ordered the oil company to repay a $389 million debt to YUKOS Capital, a liability it took on with the acquisition of YUKOS in 2007.
Browder said: "If the injunction is successful and they are able to freeze cash, either Rosneft will have to pay it [the $389 million debt] or face having payments impounded around the world...YUKOS have acquired a huge weapon in their war against Rosneft." He added: "The wheels of justice move slowly but they do move and as time goes on Russia is having increasing problems around the world. The significance of this is that Russia has to behave or there will be real consequences."
Browder also believes that the latest legal developments could have ramifications for the Kremlin in other arenas. He said: "If this injunction tool works against Rosneft, it could also be used in much larger cases that YUKOS has against the Russian state in the European Court of Human Rights and the arbitration proceedings under the Energy Charter."