Two cases of Yukos: why the defeat of Russia in the ECHR is more dangerous than the defeat in the Hague

The decision to pay €1,86 billion awarded by the ECHR to former Yukos shareholders may have much more serious implications than a verdict on $50 billion by the Hague Tribunal. Both for the Russian budget and its judicial system.
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July 31 The European Court of Human Rights (ECHR) in Strasbourg has ordered Russia to pay € 1,86 billion to the former shareholders of Yukos. This event went almost unnoticed in the background of an unprecedented $ 50 billion, in which estimated the loss of the former co-owners of the company's international arbitration tribunal in The Hague, three days earlier. The ECHR also ordered Russia to pay former shareholders of Yukos reimbursement of legal costs (about € 300,000).

In an interview with Forbes, Mikhail Khodorkovsky, previously a low score on the chances of voluntary payment of the money awarded by the decision of the ECHR. But Russia will fulfill its international obligations, sooner or later, Khodorkovsky noted in an interview with the journalist of "Vedomosti".

Forbes found that the decision to pay € 1,86 billion for the violated human rights can have far more serious implications than a verdict of $ 50 billion for the expropriation of the company. As for the Russian budget, and for the Russian judicial system.

The fact that Russia has many ways to delay execution of the decision of the arbitration court, but the verdict of the ECHR "wriggle out" will not be easy.
<br /> In 1998, Russia joined the Council of Europe and since then is obliged to fulfill the human rights requirements of the court, said the lawyer of the Moscow Bar Association "Lipcer, Stavitskaya and Partners" Elena Liptser.

Refusal of benefits awarded by the ECtHR to be in direct violation of the international obligations of the state. "The ECHR decision could be important, since the execution of the decision is likely to come earlier," - adds professor MGIMO, a specialist in international investment law, Dmitry Labin.
In order to receive compensation under the decision of the Hague Tribunal must be forced to execute the decision in the countries that have signed the Washington Convention 1965. In order to execute the decision of the ECHR, nowhere else to handle it is not necessary - by the rules of the claimant sends bank details to the representative of the Russian Federation at the Court, to a few months to get compensation from the Russian treasury.

Russia is threatened not only by spending almost $ 2 billion, but also need to change jurisprudence. Russian judges will have to consider the verdict of Europe.

Hagueassmatrivaet disputes in a specific case, the decision of the court will have no impact on the legal system in Russia, but the verdict of the ECHR, Russia is obliged to take into account the legal and judicial system, Labin explains.

This means that after the payment of the compensation provided by the ECHR, Russia will have to recognize that the rights have been violated by those to whom it is intended. And to prevent similar violations in the future. In the case of Yukos refers to "access to fair justice" and "the protection of property rights."

"The Yukos case strongly distorted jurisprudence. And now there is a chance that it will start to return to normal, "- said Labin. According to him, the way Russia at ECHR verdict will respond, will have great significance for the country's subsequent history.

Of course, the execution of ECtHR judgments can be tightened. The Russian government may appeal within three months and request that the case was referred to the Grand Chamber of the ECHR.

But there still needs to get there. Decide whether to transfer the case 19 judges of the Grand Chamber shall be groupsand of the five judges who did not participate in the same process, says lawyer Elena Liptser.

Fashion enforcement of ECHR decisions are not there (as there is in principle a legal enforcement mechanism of a sovereign state in the commission of an act).

However, until now, "there were no cases that Russia does not fulfill the decisions of the European Court of Human Rights", the expert concludes.

Presidential press secretary Dmitry Peskov, at the time the material was unavailable for comment. Leonid Nevzlin, the main beneficiary of the plaintiff - Group Menatep Limited, and which included Yukos, did not respond to a request Forbes.