he Tribunal, applying the UNCITRAL Arbitration Rules and sitting in The ague under the auspices of the Permanent Court of Arbitration ordered the ussian Federation to pay damages in excess of USD 50 billion to the majority hareholders of Yukos Oil Company. The Tribunal also ordered the Russian ederation to reimburse to the Claimants USD 60 million in legal fees, which epresent 75% of the fees incurred in these proceedings, and EUR 4.2 million in rbitration costs. This is by far the largest award ever rendered by an arbitral ribunal

The Tribunal, applying the UNCITRAL Arbitration Rules and sitting in The 
ague under the auspices of the Permanent Court of Arbitration ordered the 
ussian Federation to pay damages in excess of USD 50 billion to the majority 
hareholders of Yukos Oil Company. The Tribunal also ordered the Russian 
ederation to reimburse to the Claimants USD 60 million in legal fees, which 
epresent 75% of the fees incurred in these proceedings, and EUR 4.2 million in 
rbitration costs. This is by far the largest award ever rendered by an arbitral 
ribunal.
he Arbitral Tribunal was composed of The Hon. L. Yves Fortier, PC, CC, OQ,
C (Chairman), Judge Stephen M. Schwebel and Dr. Charles Poncet. The Arbitral
wards are available on the website of Permanent Court of Arbitration.
ackground of the Dispute
n 2003, Yukos Oil Company was the largest oil company in Russia and produced
ver 1 million barrels of oil a day. It was about to become the fourth largest oil
ompany in the world. That same year, however, the Russian Federation launched
oordinated attacks on Yukos Oil Company starting with the arrest of its CEO
ikhail Khodorkovsky on October 25, 2003. The Russian Federation then
roceeded to destroy the Company through the enforcement of fabricated tax
laims and by intimidating and harassing its employees and officials as well as
ther individuals related to the Company, including Yukos’ auditor PwC. The
xpropriation of Yukos’ assets was achieved gradually, starting in December 2004
ith the rigged auction of Yukos’ largest production unit Yuganskneftegaz
“YNG”) and ending with the Company’s final liquidation in November 2007.
n 2005, Hulley Enterprises Limited, Yukos Universal Limited (two subsidiaries
f GML Limited), and Veteran Petroleum Limited (the pension fund established
n 2001 for the benefit of former Yukos employees), which collectively owned

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