Earlier in February, the Hague Court of Appeals reinstituted an arbitral order against Russia to pay $50 billion to the shareholders of the former Yukos Oil Company for expropriation. This decision overturned a Hague District Court opinion that set aside the arbitral award based on the PCA’s lack of jurisdiction.
The original argument for lack of jurisdiction relied on the fact that the Energy Charter Treaty (ECT), of which Russia has not signed, was the basis for the case. However, the appellate court determined that Russia had promised to apply the ECT provisionally and that there was no conflict with the arbitration provision therein. […]