Dutch Supreme Courts Landmark Ruling Solidifies $50 Billion Yukos Compensation

A historic payment of $50 billion from Russia to the former shareholders of the dissolved oil company Yukos continues to stand after the Dutch Supreme Court dismissed a Russian appeal on Friday, concluding a lengthy legal battle.

This ruling marks the end of a protracted dispute surrounding Yukos, which collapsed in the early 2000s following the arrest of its former owner, Mikhail Khodorkovsky, a billionaire and outspoken critic of the Kremlin.

In its official statement released on Friday, the court said, “The Supreme Court dismisses the appeal and mandates the Russian Federation to cover the costs associated with the appeal proceedings.”

Yukos once held the title of Russia’s largest oil company, emerging in the 1990s amid the Soviet Union’s decline, as entrepreneurs like Khodorkovsky acquired assets at remarkably low prices.

Khodorkovsky became an outspoken opponent of Russian President Vladimir Putin and was arrested in 2003. Following his arrest, the Kremlin imposed a staggering tax bill of approximately $27 billion on Yukos, which ultimately led to its liquidation in 2006.

Although Khodorkovsky, who served ten years in prison and currently lives in exile, is not involved in this legal matter, former majority shareholders of Yukos pursued compensation from Russia. They escalated their case to the Permanent Court of Arbitration (PCA) located in The Hague.

In 2014, after nine years of hearings, the PCA ruled in favor of the shareholders, granting them $50 billion—a sum considered the largest arbitration award worldwide.

This victory was followed by multiple appeals and counter-appeals. In 2016, a local Dutch court shocked many by siding with Russia, stating the PCA did not have the authority to award damages to the shareholders. However, the Dutch appeals court later reversed this decision, reinstating the award to the shareholders.

Russia then brought the case before the Dutch Supreme Court, which referred it back to the Amsterdam Court of Appeals. The judges reassessed the situation and again concluded that the $50 billion award should remain intact.

Friday’s ruling was Moscow’s attempt to appeal to the Supreme Court, effectively signaling a potential conclusion to the matter.

Tim Osborne, representing the shareholders through the GML group, called the ruling “groundbreaking” and a “historic victory.” He emphasized that it “reinforces the essential legal principle that no state—regardless of its status, including a rogue state like Russia—is beyond the law.”