2015 Arbitration Scorecard: Highest Stakes

1. Yukos Universal v. Russian Federation; Hulley Enterprises v. Russian Federation; Veteran Petroleum v. Russian Federation
Amount in controversy: $114 billion
Claimant’s counsel: Shearman & Sterling;
De Brauw Blackstone Westbroek
Respondent’s counsel: Cleary Gottlieb Steen & Hamilton; Baker Botts; Hanotiau & van den Berg
The largest award on the largest claim in arbitration history. Will it ever lead to the largest recovery? On July 18, 2014, the arbitral tribunal found that, under the guise of collecting taxes, Russia bankrupted Yukos Oil Company to facilitate the transfer of its assets to Rosneft and other state-owned enterprises, in violation of a European investment protection pact known as the Energy Charter Treaty. The arbitrators awarded Yukos’s former majority shareholders $50 billion, as well as 75 percent of their legal fees and 100 percent of their arbitration costs, plus interest as of this year at the rate of the yield on 10-year U.S. treasury bonds. Russia has filed set-aside proceedings in the Netherlands at the District Court of The Hague, which are pending.

2. SUAL Partners Limited v. EN+ Group Limited, United Company RUSAL plc, Glencore International A.G., and Oleg Deripaska
Amount in controversy: $48 billion
Claimant’s counsel: DLA Piper; Brick Court Chambers
Respondent’s counsel: Linklaters; Kirkland & Ellis; Ashurst; Bryan Cave; 4 Stone Buildings; Blackstone Chambers
Intramural warfare among oligarchs of Russian origin has been a gold mine for London lawyers, or in this case an aluminum mine. RUSAL minority shareholder SUAL said it was robbed by RUSAL of its right to veto an aluminum supply contract, valued at $47 billion, between the Swiss commodities trader Glencore and RUSAL (majority owned by Oleg Deripaska’s EN+). A January 2014 confidential settlement resulted in the withdrawal of all claims against RUSAL. The fight continued among SUAL, Glencore and En+ as to the interpretation of certain shareholder arrangements. After a two-day hearing in London, the arbitrators ruled on these discrete questions in April 2014, and the matter is now closed.