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Court backs Yukos shareholders against Kremlin in $50 bn case

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A Dutch court Tuesday upheld an appeal by shareholders of the dismantled oil giant Yukos in a landmark ruling, boosting their fight in a $50 billion case for compensation.

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The ruling overturns a lower Dutch court’s ruling in favour of Russia, which had contested an original decision by the Hague-based Permanent Court of Arbitration that awarded shareholders billions of dollars after Yukos was dismantled in the mid-2000s.

“The Appeals Court in The Hague decided today that a previous ruling in favour of the Russian Federation was incorrect,” the court said in a statement, adding an original $50 billion award by the PCA — an international arbitral tribunal — “is in force again”.

Russia swiftly said it would appeal.

The long-awaited ruling comes almost 14 years after the once powerful company filed for bankruptcy and follows a controversial 2014 ruling that ordered Russia to pay out billions of dollars in compensation to its former shareholders.

The PCA that year ruled that Russia had forced Yukos into bankruptcy with excessive tax claims and then sold off its assets to state-owned companies.

It based its ruling on the provisions of a multilateral 1994 accord, the Energy Charter Treaty, which aimed to promote energy security and which says a dispute between a member state and a foreign investor could be solved through arbitration.

It then ordered Moscow to pay more than $50 billion to the former shareholders — a record award for the arbitration tribunal.

– ‘Brutal kleptocracy’ –

In a shock turnaround a local Dutch court in 2016 annulled the PCA’s decision, saying the legal body was “not competent” to rule in the case, based on the treaty.

But appeals judges Tuesday disagreed with the lower court’s findings, saying “Russia was under an obligation to enforce the treaty unless it was in breach of Russia law.”

“This court finds that there was no breach of Russian law.”

Yukos’ main shareholder GML hailed the ruling.

“A brutal kleptocracy has been held to account,” chief executive Tim Osborne said in a statement.

Tuesday’s decision however may not be the end of the saga: the parties may still fight the decision at the Dutch Supreme Court, officials said.

Moscow “will continue to defend its legitimate interests and, in an appeal, contest the verdict”, Russia’s justice ministry said in a statement.

Yukos, once Russia’s biggest post-Soviet oil company, was broken up after its former owner, Kremlin critic and ex-tycoon Mikhail Khodorkovsky, was arrested in 2003.

Khodorkovsky says the case against him was always political.

“The expropriation of Yukos was not about taxes, but about the fight against political opponents,” Khodorkovsky, who lives in exile in London, said on Twitter.

His arrest came after Russian President Vladimir Putin warned the nation’s growing class of oligarchs against meddling in politics.

Yukos was sold off in opaque auctions to state companies led by Rosneft between 2004 and 2006. State-owned Rosneft was then small, but has since grown into one of the world’s biggest listed oil companies by production volume.

The claimants have been seeking compensation for what they say are their losses caused by the break-up of Yukos.

– ‘Expropriation of the century’ –

The question “relates to the circumstances of the Yukos takeover by the Russian oligarchs during its privatisation in 1995 and 1996,” Russian government lawyer Andrea Pinna told AFP ahead of the ruling.

As the Soviet Union crumbled, unscrupulous businessmen amassed immense fortunes and influential empires by scooping up former Soviet assets — particularly in raw materials — at bargain-basement prices.

“Russia considers that the acquisition of Yukos was only possible through corruption and other illegal acts,” Pinna said.

Emmanuel Gaillard, representing former shareholders, told AFP that “Russia is making considerable diplomatic efforts to try and discredit the players in this case” which he called “the greatest expropriation of the 21st century”.

Khodorkovsky, who is no longer a stakeholder, spent a decade in prison on charges of tax evasion, fraud and embezzlement. He was suddenly pardoned by Putin in 2013 and flown out of the country.

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Super Eagles: Chelle Explains Decision to Invite New Players

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Super Eagles head coach Éric Chelle has defended his decision to hand opportunities to several new players during the Unity Cup and the international friendly against Poland, saying the move is part of efforts to strengthen the national team.

According to DAILY POST, Chelle included eight home-based players in his squad for the Unity Cup invitational tournament as he continues to assess new talents capable of improving the team.

Players such as Femi Azeez, Owen Oseni, Arthur Okonkwo, and Rafiu Durosinmi all made their debut appearances during the competition.

Banik Ostrava defender Abdullahi Bewene also earned his first cap for the Super Eagles in the friendly against Poland, while Genk defender Christian Akpan received a late invitation for the upcoming friendly against Portugal.

Speaking to the Super Eagles media team, Chelle said the inclusion of fresh faces is aimed at raising the quality and competitiveness of the squad.

“We have analysed our game over the past year and have tried to bring in players who can help the team grow,” Chelle said.

“We need to improve because, for me and for everyone, it is often the smallest details that make the difference between being the best team and winning a trophy.”

The Malian tactician has continued to experiment with his squad since taking charge, with a focus on building a stronger and more competitive team ahead of future international competitions.

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“I Left the Frying Pan for Hellfire” — Senatorial Aspirant Laments Exit from APC to NDC

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Ehiozuwa Agbonayinwa, an aspirant for the Edo South Senatorial seat under the platform of the Nigeria Democratic Congress (NDC), has expressed deep frustration over his experience in the party, describing his defection from the All Progressives Congress (APC) to the NDC as “moving from the frying pan into hellfire.”

Speaking on Arise NewsNews Day programme on Friday, the former member of the House of Representatives alleged that despite winning the party’s senatorial primary election, he is now being prevented from appearing on the ballot.

Agbonayinwa further accused the NDC’s national leader, Senator Seriake Dickson, of reneging on earlier encouragement for him to contest the Senate seat on the party’s platform. According to him, Dickson personally persuaded him to purchase the party’s expression of interest and nomination forms, only to later deny ever doing so.

“I have moved from the frying pan into hellfire,” Agbonayinwa said.

“After efforts to reach a consensus failed, we proceeded to a direct primary election. Party leaders brought all the aspirants together and encouraged us to step down for one another, but no agreement was reached.

“We went through a rigorous process. I understand the party is relatively new, but in all my years in both the APC and PDP, I have never witnessed this kind of situation. The primary election was held on May 29, and as of June 5, the results have still not been officially announced.”

The former lawmaker said he was particularly disappointed by the role allegedly played by Dickson, whom he described as a longtime friend and respected associate.

“Before joining the NDC, I reached out to Senator Seriake Dickson and later visited him at his residence. During our discussion, he asked why I could not pursue a Senate seat under the NDC platform.

“At the time, I was considering contesting for the House of Representatives, but after his suggestion, I told him I would consult with my political leaders. After doing so, I informed him of my decision and thanked him. To my surprise, the same person who encouraged me to obtain the nomination form has now claimed he never made such a recommendation,” he stated.

Agbonayinwa maintained that the handling of the primary election process has left him frustrated and disillusioned, raising concerns about transparency and internal democracy within the NDC.

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Some Nigerians Have Turned Insecurity Into a Commercial Venture — PDP Chieftain

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A chieftain of the Peoples Democratic Party (PDP), Anthony Ehilebo, has expressed concern over the worsening security situation in Nigeria, alleging that some individuals now view insecurity as a profitable enterprise.

Speaking on News Central’s Politics HQ on Friday, Ehilebo said the failure of authorities to bring perpetrators of major terrorist attacks and kidnappings to justice has contributed to the continued spread of insecurity across the country.

He cited the abduction of schoolgirls in Borno State and the attack on students in Buni Yadi as examples of incidents in which those responsible have not been adequately held accountable.

“When Boko Haram kidnapped girls in Borno State, till today we have not found those responsible and held them to account. Buni Yadi happened and nobody was held to account, and it spread to other schools,” he said.

Ehilebo noted that insecurity in Nigeria has evolved into different dimensions, including terrorism driven by extremist ideology and criminal activities motivated by financial gain.

“There are multiple facets and there is one that is solely domiciled within terrorism and if you look at the literal translation of Boko Haram, it means western education is haram according to radical Islamic teachings,” he stated.

He also alleged that some people now engage in kidnapping and related crimes for economic reasons, citing a recent case involving a senior special assistant in a state government who was reportedly arrested for allegedly staging her own abduction in an attempt to obtain ransom from the government.

“It has now become an industry and a commercial venture for some and for some it has become literally a religious thinking process,” he said.

The PDP chieftain argued that the lack of consequences for criminal acts has encouraged the persistence of insecurity, stressing that stronger political will is required to address the challenge effectively.

“The bottom line that has kept this is the consequence, which is almost driven by political will,” he added.

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