Investors suing Russia say Kremlin will use law firm’s exit to delay $57bn Yukos Oil proceedings
Investors suing the Russian state have raised concerns their case will be delayed after the New York City law firm acting on behalf of Russia exited the country and cut its ties with the Kremlin.
A consortium of investors said they fear Russia will use delays to avoid paying a $57bn (£43bn) claim, by arguing they cannot fight their case due to difficulties in finding lawyers willing to represent them.
The claims come after White & Case shuttered its Moscow offices and severed its links to all Russian state-owned entities, in response to Russia’s invasion of Ukraine.
The case comes after a Dutch Court said Yukos Oil must pay investors $57bn, over claims the Kremlin intentionally bankrupted the oil firm in order to take control of its assets.
The Cyprus and Isle of Man registered investors asked the court to give the Russian state a two-week deadline to file any evidence, amid fears the Kremlin will shift its UK assets overseas.
In arguing on behalf of the investors, Jonathan Crow QC claimed that the Kremlin’s new lawyers “will take a very considerable amount of time to get up to speed” as he argued that Russia should be forced to file any evidence “before White & Case come off the record.”
In claiming Russia’s situation is “purely self-inflicted” Crow suggested “it would be repugnant to wage war and then come to this court and ask for more time than what is allowed because they cannot find lawyers.”
However, the Commercial Court refused the investors request, and instead said Russia must file its evidence by the 6th May.
“Whatever timetable I set today, Russia will be aware of that timetable and will know it needs to get on with filing and producing the evidence as soon as possible,” Commercial Court judge Mr Justice Henshaw said.
Acting on behalf of Russia, White & Case partner David Goldberg argued that Russia should have the same rights as any other party.