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Compensation payout in Yukos case may hurt Russians’ incomes — envoy

In 2016 the amount of compensation paid under the ECHR decisions amounted to $8.2 mln

ST. PETERSBURG, December 15. /TASS/. The European Court of Human Rights (ECHR) has ruled in favor of an unprecedented compensation in the Yukos oil company case. Shelling out the payment from Russia’s budget could burden Russian taxpayers and negatively affect their incomes, Russian Presidential Envoy to the Constitutional Court, Mikhail Krotov, told an open session at the Constitutional Court on Thursday.

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"The ECHR made an unparalleled in its history ruling on the amount of compensation for the liquidated company’s shareholders," he stated. "Taking into account the fact that the compensation to the applicant is awarded from the federal budget, one could see a violation of the Constitution’s provisions on a social welfare state. The unfounded increase in the amount of compensation awarded by the ECHR, including taking into account the inflation rate, will apparently place a financial burden on Russian taxpayers and their final incomes."

He noted that in 2016 the amount of compensation paid under the ECHR decisions amounted to 500 million rubles ($8.2 mln), while 600 million rubles are to be earmarked for the purpose from the budget in 2017.

In 2014, the ECHR ruled that former Yukos shareholders are entitled to 1.866 bln euro in compensation following their complaint against Russia issued in 2011. The ECHR concluded the 2000 inquiry into Yukos’ taxes by Russia’s government violated the European Convention on Human Rights. Russia hence had to present to the European Council a plan on compensation payments to former Yukos shareholders before June 15, however it was not done.

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