Professor Albert Jan van den Berg - italaw.com · Oral Argument Professor Albert Jan van den Berg...
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Oral Argument Professor Albert Jan van den Berg
THE RUSSIAN FEDERATION
VERSUS
HULLEY ENTERPRISES LIMITED VETERAN PETROLEUM LIMITED
YUKOS UNIVERSAL LIMITED
DISTRICT COURT OF THE HAGUE, HEARING, 9 FEBRUARY 2016
No Jurisdiction on the Basis of Article 45(1) ECT
''Each signatory agrees to apply this Treaty provisionally pending its entry into force ( ... ),
to the extent that such provisional application is not inconsistent with its
constitution, laws or regulations."
JURISDICTION GROUND 1: ARTICLE 45 ECT RUSSIAN FEDERATION
Domestic Investments and Mala Fide Investments Are Not
Protected
JURISDICTION GROUND 2- Article 1(6) and (7) ECT -
Appendix to Interim Awards ("Russian Sandwich")
Senior~ Prol<:elur
Ben;,fici3Jy
APPENDIX
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JURISDICTION GROUND 2: DOMESTIC +MALA FIDE INVESTMENTS RUSSIAN FEDERATION
The Russian circulation of funds
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HULLEY ENTERPRISES VETERAN PETROLEUM
DE FACTO MANAGED FROM MOSCOW BY OLIGARCHS
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Domestic and/ or Mala Fide Investments Are Not Protected
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JURlSDlCTlON GROUND 2: DOMESTIC +MALA FIDE INVESTMENTS RUSSIAN FEDERATION
No Jurisdiction on the Basis of Article 21(1) ECT
''Except as otherwise provided in this Article, nothing in this Treaty shall create rights or impose obligations with respect to Taxation Measures of the Contracting Parties. In the
event of any inconsistency between this Article and any other provision of the Treaty, this
Article shall prevail to the extent of the inconsistency."
JURISDICTION GROUND 3: ARTICLE 21(1) ECT RUSSIAN FEDERATION
MANDATE GROUND 1- Article 21(5)(b)(i) ECT -
The Arbitral Tribunal Has Failedto Refer the Dispute on
Expropriation to the Competent Tax Authorities.
Breach of referral obligation Article 21(5)(b)(i) ECT
''( ... ) bodies called upon to settle disputes ( ... ) shall make a referral to the relevant
Competent Tax Authorities."
MANDATE GROUND 1: BREACH OF REFERRAL OBLIGATION RUSSIAN FEDERATION
OBLIGED SITUATION
ACTUAL SITUATION
Breach of Referral Obligation
Tribunal submits the dispute
Tribunal does not submit the dispute
)
Tax authorities issue advice
Tax authorities are not requested to issue
advice
)
Parties are heard about this advice
Parties are not heard
Yukos Awards
)
Yukos Awards
MANDATE GROUND 1: BREACH OF REFERRAL OBLIGATION RUSSIAN FEDERATION
MANDATE GROUND 2 - surprise decision -
- own method -- no due process -
The Arbitral Tribunal Has Failedto Comply with Its Mandate
When Determining the Amountof Damages
The Determination of Damages by the Arbitral Tribunal
DAMAGES Equity value + Dividend
MANDATE GROUND 2: DETERMINATION OF DAMAGES RUSSIAN FEDERATION
Introduction of the "Assistant"
19 THE CHAIRMAN : Thank you, Mr Greig . I would like to bring to
20 the attention of the parties that I have asked one of my
21 colleagues in my office in Montreal to assist me in the
22 conduct of this case. Because, like all of us, I travel
23 a lot, if at any time I am unreachable, you could always
24 contact him . ( ... )
2
3
4
( .. . ) It
may come to pass that you wish to jfind out something with
respect to the tribunal that Brooks Daly might not be
5 aware of. Martin at my office in Montreal could be
6 reached and hopefully will have the answer for you.
f roceaural nearzng, 31 (A wut r ')oos, p 9') 93
MANDATE GROUND 3: MANDATE NOT FULFILLED PERSONALLY RUSSIAN FEDERATION
The Introduction of the "Assistant"
•
••• HUH 1 ® ---- 3
TRIBUNA~··················· :. 0 ~ ~ I
VALASEK
MANDATE GROUND 3: MANDATE NOT FULFILLED PERSONALLY RUSSIAN FEDERATION
Fortier
Price
Poncet (replaced Price) Schwebel
The Hours Spent by the "Assistant"
(2 Bom.w • af Baarll iD. 111-11-2005 moB, lluuaah 31- inelnilina
l2-2007 - h-r.iua
20o8
22 359 215 275,5
138,05 0
48,5 300,5
411,85 152,75
(4J (5) Bom.w • af Bcnml•af
1-1-2009 111-11-2005 lluuup ea.d lhrcn ..... end
381 2625,2 3006,2
490,5 1592,25 2082,75 138,05 0 138,05
349 1540 1889
564,6 1852,6 2417,2
MANDATE GROUND 3: MANDATE NOT FULFILLED PERSONALLY RUSSIAN FEDERATION
Arbitrators Have Not Fulfilled Mandate Personally
- 3000
2625
- 2500
- 2000
1592 1540 e 1500
e 1000
e 500
0
Valasek Fortier Price + Poncet • Hours from 18 November 2005 through 3 1 December 2008
• Hours from 1 Janua1y 2009 to the end
1853
Schwebel
MANDATE GROUND 3: MANDATE NOT FULFILLED PERSONALLY RUSSIAN FEDERATION
Valasek as author
Section IX 14-8% 95·2%
Section X 14,8% 95·2%
Section XII
o% 20% 40% 6o% 8o% 100%
• Tribunal • Valasek
Average probability according to Dr Chaski's model that Valasek was the author of each of the subsections of the Representative Sections attributed to him
MANDATE GROUND 3: MANDATE NOT PERSONALLY FULFILLED RUSSIAN FEDERATION