oil-1The District Court of the Hague overturned a record $50 billion in damages awards issued by the Permanent Court of Arbitration (“PCA”), to the former controlling shareholders of the Yukos Oil Company on the grounds that Russia had not submitted itself to the PCA’s jurisdiction.

In 2014, the PCA awarded the former Yukos Oil Company shareholders damages, unanimously finding that Russia had breached its international obligations under the Energy Charter Treaty by destroying Yukos Oil Company, expropriating its assets for political reasons and transferring its assets to the state-owned oil company Rosneft.