European Court of Human Rights decision on Yukos case contradicts Russia’s Constitution

Russian Politics & Diplomacy January 19, 2017, 10:54

The implementation of ECHR decision on Yukos case is impossible, the Chairman of Russia’s Constitutional Court said

ST. PETERSBURG, January 19. /TASS/. The Russian Constitutional Court said that the decision by the European Court of Human Rights calling for a payout of more than 1.8 bln euro in compensation to ex-Yukos shareholders cannot be enforced, according to the Court’s ruling.

"The Constitutional Court ruled it is impossible to enforce the judgement by the European Court of Human Rights on the case of "OAO Neftyanaya Kompaniya Yukos vs. Russia" in accordance with the Constitution of the Russian Federation," the Court stated.

Zorkin added that the decision of the European Court of Human Rights on compensation payment of more than 1.866 bln euro on Yukos case violates the Russian Constitution.

The Court noted, payment of an unprecedented sum to the shareholders from the budget, which did not receive from them tax payments required for performing public obligations to the Russian citizens contradicts the constitutional principles of equality and justice.

According to Zorkin, Yukos’ long history of being negligent in paying taxes and this undermined the Russian law. "Yukos’ long history of tax delinquencies undermined Russian law," Zorkin said. "Executing the European Court of Human Rights’ decision on the Yukos case is impossible," he added.

He noted, "even if the shareholders did not participate directly in organizing illegal schemes that lead to negative consequences for the company, they received dividends, including the funds that should have been paid to the budget in the context of fair taxation."

On July 31, 2014, the European Court of Human Rights obliged Russia to pay Yukos's shareholders "as they stood at the time of the company’s liquidation and, as the case may be, their legal successors and heirs" the compensation for the pecuniary damage 1.8 bln euro on the case "OAO Neftyanaya Kompaniya Yukos v. Russia".

 

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