Page 11 - RusRPTDec23

Carlsberg has since officially severed ties with its Russian subsidiary, expressing its refusal to engage in transactions with the Russian government that would legitimize the unlawful takeover of their business in Russia.
Additionally, Russia has introduced new currency controls that complicate the process for foreign companies to divest their Russian assets. Under these controls, companies are required to sell Russian assets in exchange for rubles rather than foreign currencies like dollars or euros. Failure to comply with this requirement could result in delayed payments or reduced amounts. While Kremlin spokesperson Dmitry Peskov denied any direct link between the currency controls and ruble fluctuations, it is believed that the government aims to stabilize the depreciating currency. These new restrictions add to existing mandates requiring foreign companies to sell Russian assets at a 50% discount and contribute 15% of the transaction value to the state budget.
2.3 Russia’s state immunity plea denied by UK court in Yukos award case
Russia's attempt to claim state immunity as a means to avoid the enforcement of the Yukos arbitration award worth $60bn has been denied by London's High Court, Reuters reported on November 1.
This ruling removes a key obstacle for three former Yukos shareholders, namely Hulley Enterprises, Yukos Universal, and Veteran Petroleum, in their ongoing efforts to enforce the arbitration award issued in 2014. However, their pursuit has faced numerous challenges, and it is likely to involve several more years of legal battles before any payment is realised.
The arbitration tribunal in The Hague had awarded these companies slightly over $50bn in 2014, concluding that Russia had executed a "devious and calculated expropriation" of Yukos following the imprisonment of its former owner, Mikhail Khodorkovsky.
Subsequently, the shareholders have been endeavoring to enforce the award, which has grown to nearly $60bn, in various jurisdictions, including Britain, the United States, and the Netherlands.
During a hearing held in October, Russia contended that it had not consented to the jurisdiction of the arbitration and argued that the matter had not been conclusively settled by Dutch courts.
A stay on the London case, initially imposed in 2016 while Russia challenged the award in the Netherlands, was lifted last year following a ruling by the Dutch Supreme Court in 2021. Russia's legal team maintained that the Dutch Supreme Court upheld one aspect of Russia's appeal and determined that the shareholders' alleged provision of false evidence had been wrongly dismissed, thus referring that issue back to a lower court.
However, on Wednesday, Judge Sara Cockerill ruled that the matter currently under consideration in Dutch courts did not pertain to jurisdiction and rejected
11 RUSSIA Country Report December 2023 www.intellinews.com