Russian Constitutional Court Rules Russia Does Not Have to Comply with ECtHR Ruling on Yukos Shareholders (January 19, 2017) [1]
On January 19, 2017, the Russian Constitutional Court (RCC) ruled [3] (Russian only) that Russia did not have to comply with the 2014 European Court of Human Rights (ECtHR) ruling [4], OAO Neftyanaya Kompaniya Yukos v. Russia. The ECtHR ruling ordered Russia to pay 1.8 billion euros to former shareholders of Yukos, an energy company nationalized by the Russian government, for the retroactive collection of taxes in violation of the Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms [5]. The RCC rejected this determination, reasoning that the Russian Constitution is supreme over ECtHR decisions. Subsequently, the RCCC found supreme one of its previous rulings that allowed the Russian government to collect taxes past the statute of limitations when the entity in question has used that limitation to the detriment of taxpayers. The decision is not subject to appeal. The nationalization of Yukos led to another award [6] at the permanent Court of Arbitration in The Hague, totaling 50 billion dollars, which The Hague District Court has since overturned [7].