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Russian court rejects compensation to Yukos shareholders

Xinhua, January 19, 2017 Adjust font size:

Russia's Constitutional Court on Thursday rejected a ruling by the European Court of Human Rights (ECHR) to pay 1.9 billion euros (2.13 billion U.S. dollars at current price) to former shareholders of the defunct oil company Yukos.

The payment is unfair to Russia's taxpayers and contradicts its constitutional principles of equality and justice, the RIA-Novosti News agency quoted the Russian court as saying.

Shareholders of once Russia's largest oil producer have contended that Moscow used tax claims against the company, which led to its bankruptcy and their financial losses.

In 2014, the ECHR determined that Russia must pay about 1.9 billion euros to Yukos ex-shareholders for retrospective proceedings of the tax evasion case.

However, Russia said according to Article 45 of the Energy Charter Treaty, arbitration rules in this case can only be applied to the extent that such provisional application is not inconsistent with the country's constitution, laws or regulations.

Yukos, founded in 1993, declared bankruptcy in 2006 and disbanded in 2007. Former Yukos CEO Mikhail Khodorkovsky was jailed for more than a decade on charges of fraud and tax evasion, among others. He was pardoned by Russia President Vladimir Putin in December 2013. Endi