YUKOS Wins Rulings in Its Rosneft Battle
Managers of YUKOS have won injunctions in US and British courts seeking the seizure of property from Rosneft, indicating that YUKOS' legal battle against the Russian state is far from over.
The injunctions were part of efforts to enforce a ruling by a Dutch court last year that ordered Rosneft to repay a $389 million debt, plus interest and penalties, to Yukos Capital S.a.r.l. Rosneft took on the liability when it acquired YUKOS' oil-producing assets in a government auction in 2004.
Rosneft said that the decisions have had no effect on its operations and that it was continuing to meet its export commitments. It said it would appeal both rulings.
But The Wall Street Journal reports that one person familiar with a company that trades with Rosneft said the courts' actions were having an effect. He said: "It's made it more complicated to pay them for exports."
The Financial Times adds that Rosneft said it considered the UK injunction "groundless and is taking all necessary steps to protect its property in courts."
The Wall Street Journal adds that the YUKOS Capital cases are part of a number of legal challenges being waged by YUKOS, which was destroyed in a Kremlin campaign the company said was politically motivated. Former managers of YUKOS have taken the Russian government to the European Court of Human Rights and are seeking a record $98 billion in compensation. The company's latest court victories show its legal struggle could be gaining traction in some jurisdictions. That is potentially embarrassing for the Kremlin and Rosneft.