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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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ORTOM DISMISSES FALSE REPORT ON ALLEGED PLOT TO REPLACE AONDOAKAA

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The attention of the immediate past Governor of Benue State and Leader of the Peoples Democratic Party, PDP, in the state, Chief Samuel Ortom has been drawn to a mischievous report being circulated on social media alleging that he and other leaders of the party held a secret meeting with some chieftains of the All Progressives Congress, APC, with the aim of replacing the 2027 PDP governorship candidate, Chief Michael Kaase Aondoakaa, SAN, with the Executive Secretary of the Nigerian Shippers’ Council, Dr. Pius Akutah.

The report is false, misleading and a deliberate distortion of the facts.

For the avoidance of doubt, Chief Ortom, alongside the Senate Minority Leader, Senator Patrick Abba Moro, and the PDP governorship candidate, Chief Michael Kaase Aondoakaa, SAN, met with some prominent Benue sons, including Chief Simon Shango, Professor Iyorwuese Hagher, Dr. Pius Akutah, Engr. Emmanuel Ameh and Dr. Matthias Byuan.

The meeting was part of ongoing consultations and engagements aimed at building a broad strategic alliance of Benue stakeholders for the greater good of the state. At no time during the meeting was the replacement of Chief Aondoakaa as the PDP governorship candidate discussed, contemplated or placed on the agenda.

It is therefore mischievous for anyone to take a legitimate meeting of Benue leaders and manufacture an entirely different motive for it. Political consultations and engagements across party lines are neither strange nor secret conspiracies, particularly when they are driven by the larger interest of the people.

Chief Ortom wishes to state unequivocally that Chief Michael Kaase Aondoakaa, SAN, remains the duly nominated governorship candidate of the Peoples Democratic Party in Benue State for the 2027 election. The former Attorney General and Minister of Justice enjoys the confidence and support of the leadership and members of the party.

Chief Ortom equally reaffirms his conviction that Aondoakaa possesses the experience, competence, capacity and understanding of the challenges confronting Benue State to provide purposeful leadership and reposition the state on the path of security, economic recovery and sustainable development.

Those behind the false narrative are advised to desist forthwith from spreading fabricated stories capable of creating unnecessary confusion among members and supporters of the PDP and the general public. Political journalism and commentary must be anchored on facts, not conjecture, deliberate falsehood or the attribution of imaginary motives to legitimate engagements.

Chief Ortom urges PDP members, teeming supporters of Chief Aondoakaa and the people of Benue State to disregard the baseless report and remain focused. No amount of misinformation or political mischief will distract the PDP leadership from its commitment to building a formidable coalition of Benue people towards offering the state a credible alternative in 2027.

Signed:

Zege Paul Terhide
Media Assistant to Chief Samuel Ortom
August 7, 2026

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Osun Account Freeze: Gov Adeleke, demands N2bn damages

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The Governor of Osun State, Ademola Adeleke, on Thursday slammed a N2 billion suit on the Economic and Financial Crimes Commission (EFCC) over what he termed the unlawful freezing of the state’s Federal Statutory Allocation Account.

The suit, marked FHC/ABJ/CS/1762/2026, also has the Attorney General of Osun State, as well as the Accountant General of the state, listed as 2nd and 3rd plaintiffs, respectively.

Cited as 1st to 3rd defendants in the Originating Summons entered before the Federal High Court in Abuja by a team of lawyers led by Prof. M. T. Adekilekun, SAN, are the EFCC, its Chairman, and First Bank Nigeria Limited.

Specifically, the plaintiffs posed several legal questions for the court to determine, among which are:

“Whether, having regard to the express provisions of Sections 1, 6, 36, 44 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, the 1st and 2nd Defendants possess the lawful authority to freeze, restrict, block, place a ‘post no debit’ order on, or otherwise interfere with the Osun State Statutory Account maintained with the 3rd Defendant, without regard to due process of law?

“Whether, having regard to the combined express provisions of Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, the 1st and 2nd Defendants possess the lawful authority to freeze, restrict, block, place a ‘post no debit’ order on, or otherwise interfere with the Osun State Government Federal Statutory Allocation Account, Number 2017170947, maintained with the 3rd Defendant, without first obtaining and serving a valid, subsisting, and specific order of a court of competent jurisdiction?

“Whether, having regard to the combined express provisions of Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, the directive of the 1st Defendant to the 3rd Defendant ordering the freezing or restriction of the Osun State Statutory Account No. 2017170947, maintained with the 3rd Defendant, vide its letter with Reference No. CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666 dated 5th August 2026 and authored by ACE I Adenike S. Babalola (for: Director, Investigation), without any prior or concurrent court order sought, obtained and served on the 3rd Defendant, does not constitute an egregious act of executive lawlessness, an unlawful resort to self-help, a flagrant abuse of statutory powers, an unlawful suppression of the constitutional powers and functions of the Plaintiffs, a threat to the constitutional and corporate existence of Osun State, a brazen and unlawful denial of the democratic rights and dividends of the people of Osun State, and a direct violation of the fundamental constitutional principles of due process, the rule of law, and the financial autonomy of a federating unit?

“Whether, having regard to the combined express provisions of Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, the 3rd Defendant, being the banker to the Government of Osun State in respect of the said statutory account, can lawfully freeze or continue to freeze, restrict, block, or deny the Government of Osun State unrestricted access to the said account merely upon an administrative directive, letter, request, instruction, or communication from the 1st and/or 2nd Defendants in the manner done herein, in the absence of a valid, subsisting, and specific order of a court of competent jurisdiction?

“Whether, having regard to the effect of the combined express provisions of Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, and in the absence of an order of a court of competent jurisdiction, this Honourable Court ought not to forthwith set aside the directive given by the 1st Defendant to the 3rd Defendant in a letter dated 5th August 2026 ordering the freezing, restriction, blocking, or placing of a post-no-debit instruction on the Osun State Statutory Account with the 3rd Defendant, given that such action was allegedly taken in violation of due process, and in a manner demonstrably capable of crippling the constitutional and statutory obligations of the Government to the people of Osun State?”

As well as: “Whether, having regard to the effect of the combined express provisions of Section 7(6) of the Money Laundering (Prevention and Prohibition) Act, 2022, and Section 34 of the Economic and Financial Crimes Commission Establishment Act, 2004, and in the absence of an order of a court of competent jurisdiction, the 3rd Defendant did not breach the duty of care owed to the Osun State Government when, on the purported directive of the 1st and 2nd Defendants, it placed a restriction on the Osun State Statutory Account with the 3rd Defendant, given that such action was allegedly taken without a court order, in violation of due process, and in a manner demonstrably capable of crippling the constitutional and statutory obligations and rights of the Government and people of Osun State.”

Upon determination of the questions, the plaintiffs, among other things, urged the court to declare the actions the defendants took with respect to the Osun State account as “unlawful, unconstitutional, ultra vires their powers, null and void, and of no effect whatsoever.”

They further sought:
“An order setting aside, vacating, and nullifying the freezing, restriction, blocking, post-no-debit instruction, or any other restraint placed on the Osun State Statutory Account maintained with the 3rd Defendant vide its letter with Reference No. CR:3000/EFCC/ABJ/HQ/PFS/TA/OSUN/VOL.17/666 dated 5th August 2026 and authored by ACE I Adenike S. Babalola (for: Director, Investigation), for being unlawful, unconstitutional, and without legal basis.
“An order mandating the 3rd Defendant to forthwith unfreeze, unblock, and remove all restrictions, and to allow the Government of Osun State immediate and unrestricted access to and operation of the said Osun State Statutory Account.

“An order of perpetual injunction restraining the 1st and 2nd Defendants, whether by themselves, their officers, agents, servants, privies, or any person acting on their behalf, from freezing, restricting, blocking, placing a post-no-debit instruction on, or otherwise interfering with the Osun State Statutory Account or any other account of the Government of Osun State without following due process of the law.

“An order of perpetual injunction restraining the 3rd Defendant, whether by itself, its officers, agents, servants, privies, or any person acting on its behalf, from acting on any directive, letter, instruction, or request from the 1st and/or 2nd Defendants to freeze, restrict, block, or deny access to the Osun State Statutory Account, except in the manner stipulated by law.”

They also prayed the court to award N2 billion against the defendants to serve as “exemplary and aggravated damages for the unlawful interference with public funds,” as well as an order directing the defendants to pay the costs of the litigation.

Meanwhile, no date has been fixed for the suit, which was filed shortly after President Bola Tinubu directed the EFCC to immediately approach the court to unfreeze the Osun State Federal Statutory Allocation Account.

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Tinubu orders EFCC to unfreeze Osun govt account, says timing ‘deeply embarrassed’ him

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President Bola Tinubu has directed the Economic and Financial Crimes Commission (EFCC) to immediately vacate the court order freezing the Osun State Government’s bank account.

The directive followed widespread criticism that greeted the anti-graft agency’s decision to freeze the account domiciled in First Bank about 10 days before the state’s governorship election.

In a statement titled, “President Tinubu Directs EFCC to Vacate the Court Order Freezing Osun Government Account,” issued by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said he was “deeply embarrassed” by the timing of the EFCC’s action.

Tinubu clarified that his concern was not with the EFCC’s statutory powers or its decision to obtain a court order, but with the timing of the move, which he said had created negative public perception.

He noted that actions taken by federal institutions are often attributed to the President, even when he has no prior knowledge of them.

“Since assuming office, I have consistently maintained that anti-corruption and law enforcement agencies must be allowed to discharge their statutory responsibilities independently, professionally, without fear or favour, or political interference,” the statement quoted the President as saying.

Tinubu said he had deliberately refrained from interfering in the operational activities of the EFCC and other investigative agencies because he believes that strong democratic institutions operating within the law are essential to good governance and the rule of law.

He added that state institutions should be allowed to perform their statutory functions without requiring presidential approval for every action.

“Accordingly, I have directed the EFCC to immediately proceed to the court to vacate the order and discontinue whatever action it has instituted against the Osun State Government in this regard,” the statement said.

The EFCC had obtained a court order freezing the Osun State Government’s account as part of an ongoing investigation. However, the action drew criticism from opposition parties and other stakeholders, who alleged that the move could affect the credibility of the forthcoming governorship election in the state.

The anti-graft agency has yet to publicly respond to the President’s directive.

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