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Not Payable When Enforced
Moscow Arbitration has reversed the judgment of International Commercial Arbitration, which enforced on Rosneft the payment of over $490 million to Yukos-affiliated Yukos Capital S.a.r.l. With this positive award, Rosneft will be able to press in the Dutch court for unfreezing the money generated from disposal of Lithuanian Mazeikiu Nafta refinery but frozen by demand of Yukos Capital.
Moscow Arbitration reversed Friday four awards of the International Commercial Arbitration of Russia’s Chamber of Commerce and Industry for collecting over $490 million from Rosneft.
The debt amassed once Yukos-affiliated Luxembourg Yukos Capital granted the $450-million loan to then Yukos production arm - Yuganskneftegaz.
But Yuganskneftegaz went under Rosneft control in late 2004 and has never cleared that debt. Yukos Capital lodged four lawsuits to International Commercial Arbitration and was upheld there in September of 2006. The payment was enforced on Rosneft that consolidated the assets of Yuganskneftegaz and became its legal successor.
The Amsterdam court acknowledged the award on December 19, 2006 and froze the money due to Rosneft following the disposal of the foreign asset of Yukos – 53.7 percent in Lithuanian Mazeikiu Nafta sold to Poland’s PKN Orlen for $1.492 billion.
So, to unfreeze money in Netherlands, Rosneft was first to seek for the cancellation of award by International Commercial Arbitration. As Moscow is the whereabouts of the latter, its award could be appealed only in Moscow Arbitration, which finally sustained the state-run oil company of Russia.
www.kommersant.com
All the Article in Russian as of May 21, 2007
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