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Kremlin gives no comment on Constitutional Court’s decision on Yukos case

The Russian Constitutional Court believes that Russia retains the right to make certain goodwill payouts to former Yukos shareholders

Russian Presidential spokesman Dmitry Peskov Mikhail Metzel/TASS

Russian Presidential spokesman Dmitry Peskov

© Mikhail Metzel/TASS

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

MOSCOW, January 19. /TASS/. The Kremlin has offered no comment on the decision by the Constitutional Court in regards to payments to former Yukos shareholders, but assured that Russia will continue to fight for its legal interests, according to Presidential spokesman Dmitry Peskov.

"This is an issue of the Constitutional Court, so we would not want to comment," Peskov told reporters.

"Of course, Russia will continue to fight for its legal interests," he said, adding "the European Court of Human Rights ruled that Russia's actions were not politically motivated, and that the company evaded taxes." "This is something that we can acknowledge for now, in the future the legal protection of Russia’s interests will continue," Peskov stressed.

Court's ruling

The Russian Constitutional Court believes that Russia retains the right to make certain goodwill payouts to former Yukos shareholders, who are victims of its management’s wrongful actions, according to the Court’s ruling.

"The Russian Federation in good faith will have the right to make certain payments to former shareholders of the company affected by its management’s illegal actions, due to newly uncovered assets of Yukos," the document said.

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Russia’s Constitutional Court to consider implementing ECHR decision on Yukos case

Chairman of the Russian Constitutional Court Valery Zorkin said earlier 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 and cannot be enforced.

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.

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 and cannot be enforced.

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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