Kremlin’s London Real Estate Seized in $60bn Legal Battle with Yukos Shareholders
The Kremlin’s London Real Estate Seized in $60bn Legal Battle
In a dramatic turn of events, a prime plot of London real estate owned by the Kremlin has been seized by former shareholders of the defunct oil giant Yukos in the midst of a $60 billion legal battle. This marks the first successful charge over a Russian-owned property in England, as the Kremlin failed to pay legal costs to a group of former Yukos backers.
The property in question, located at 245 Warwick Road in Kensington, was purchased by the Russian Federation in 2006 for £8 million. This seizure is the latest development in the ongoing battle over Yukos, which was seized by the Kremlin in 2003. Prior to its seizure, Yukos was responsible for producing more than a fifth of Russia’s oil.
The conflict between Yukos and the Kremlin began when Mikhail Khodorkovsky, the company’s former boss and Russia’s richest man at the time, clashed with Vladimir Putin. Khodorkovsky was later imprisoned on charges of tax evasion and fraud, a move that was seen as a turning point in Putin’s consolidation of power.
Three Yukos shareholders, Hulley Enterprises, Yukos Universal, and Veteran Petroleum, obtained a landmark arbitration award in 2014, ordering Russia to pay them $50 billion in compensation. Since then, a series of legal battles have ensued worldwide as the shareholders seek to enforce the arbitration ruling in various jurisdictions, including the UK, the US, and the Netherlands.
Tim Osborne, the chief executive of GML, the parent company of Hulley and Yukos Universal, is leading the charge to hold Russia accountable. He described the seizure as a historic moment, emphasizing their commitment to seeking justice for Russia’s actions.
Russia will have the opportunity to appeal the order at a hearing scheduled for April 12, 2024. In the meantime, legal proceedings for the recognition and enforcement of the $50 billion award in the UK are ongoing, with a further hearing set for June of this year.
The seizure of the Kremlin’s London property serves as a significant development in the long-standing legal battle between Yukos shareholders and the Russian government, highlighting the complexities and challenges of seeking justice in international disputes.
