The Swedish Yukos Saga: RosInvest’s Pyrrhic Victory Over Russia and the Fortunate Correction of Previous Swedish Case Law Under Which Swedish Courts Lacked Jurisdiction Over Challenges Against Awards in the Absence of Any Connection to Sweden
IBA Arbitration Newsletter, 80-83, 2011
4 Pages Posted: 2 Jun 2012
Date Written: September 2011
The Yukos shareholders scored the first – albeit pyrrhic – victory against the Russian Federation when an SCC arbitral tribunal ordered Russia to pay US$3.5m for an unlawful expropriation pursuant to the UK-Soviet BIT. RosInvest’s path to recovery has been painful; the challenge to the arbitral tribunal’s award on jurisdiction alone reached the Swedish Supreme Court, and meanwhile the arbitral tribunal issued its final award, against which a challenge is currently pending. The immediate result of the extensive litigation has been the correction of unfavourable case law at the appellate level so that Swedish courts are determined to have jurisdiction over challenges against jurisdictional awards rendered by arbitral tribunals seated in Sweden, irrespective of whether or not the dispute has a connection (other than the seat) to Sweden.
Keywords: Yukos, RosInvest
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