OAO NK Yukos (Russia) v. Kravin Investments Ltd., White Pearl Investments Ltd., Marthacello Co. Ltd., N.P. Gemini Holdings Ltd., Heflinham Holdings Ltd., and Kindselia Holdings Ltd.
LCIA, London
Stakes: $28 billion (including $9 billion counterclaim)
Largest commercial arbitration in the world. In September 2004, while fighting for its survival in Russia, Yukos filed an arbitration against entities controlled by Roman Abramovich and other shareholders in rival Russian oil firm OAO Sibneft. The dispute arises out of an agreement for Yukos to acquire 92 percent of Sibneft shares. Sibneft announced in November 2003 that the deal would not proceed, and Yukos never established operational control. In 2004 Russian courts froze Yukos’ 35 percent bloc of Sibneft stock, for which Yukos had paid $3 billion in cash, and canceled an issue of Yukos stock that was to be swapped for a reported 57 percent of Sibneft shares. Final hearing on the merits is scheduled for October 2007.
Claimants’ Counsel: C. Mark Baker, Kevin O’Gorman, and Jonathan Sutcliffe of Fulbright & Jaworski in Houston
Respondents’ Counsel: Paul Mitchard of Skadden, Arps, Slate, Meagher & Flom in London
Arbitrators: Marc Lalonde of Strikeman Elliott in Montreal (chair); Jeffrey Hertzfeld of Salans in Paris; Kenneth Rokison, QC, of 3 Essex Court in London
