Litigation under Bilateral Investment Treaties (BITs)

Russia has entered into Bilateral Investment Treaties ("BITs") with 48 countries, 28 of which have been ratified and are in full effect (see below). The treaties are similar in content and, in general, provide for the fair and equitable treatment of investments in signatory countries ("Contracting Parties"), and prohibit nationalization or expropriation - or measures having the effect of nationalization or expropriation - without compensation.

In each case, Russia and the other Contracting Parties have expressly waived sovereign immunity and have expressly consented to the jurisdiction of a designated arbitral institution or ad hoc arbitral body, which would typically be established under the Arbitration Rules of the United Nations Commission on International Trade Law ("UNCITRAL"), or to the jurisdiction of the Institute of Arbitration of the Chamber of Commerce of Stockholm. Damages have been awarded to investors in a number of BIT cases. In a recent case, the Czech Republic was required to pay more than $300 million in a case brought by an American investor.

If you hold YUKOS ADRs or ordinary shares, are a citizen of one of the countries with which Russia has a Bilateral Investment Treaty, and would like to learn more about how to take legal action under a BIT, please contact the YUKOS Minority Shareholder Coalition.

• Key provisions of the Bilateral Investment Treaty between the UK and Russia - very typical of BITs between Russia and other countries - include the following:
• Each of Russia and the UK shall encourage and create favorable conditions for, investors of the other country to make investments in its territory.
• Investments of investors of each country shall at all times be accorded fair and equitable treatment and shall enjoy full protection and security in the territory of the other country.
• Neither country shall in any way impair by unreasonable or discriminatory measures the management, maintenance, use, enjoyment or disposal of investments in its territory of investors of the other country.
• Investments of investors of either country shall not be nationalized, expropriated or subjected to measures having effect equivalent to nationalization or expropriation (hereinafter referred to as "expropriation ") in the territory of the other country except for a purpose which is in the public interest and is not discriminatory and against the payment, without delay, of adequate and effective compensation.
• Such compensation shall amount to the real value of the investment expropriated immediately before the expropriation or before the impending expropriation became public knowledge, whichever is the earlier, shall be made within two months of the date of expropriation, after which interest at a normal commercial rate shall accrue until the date of payment, and shall be effectively realizable and be freely transferable.
• Dispute Resolution - Any dispute between an investor and a Contracting Party (country) which has not been amicably settled shall, after a period of three months from written notification of a claim, be submitted to international arbitration if either party to the dispute so wishes.
• The investor concerned in the dispute shall have the right to refer the dispute either to the Institute of Arbitration of the Chamber of Commerce of Stockholm, or to an international arbitrator or ad hoc arbitration tribunal to be appointed by a special agreement or established under the Arbitration Rules of the United Nations Commission on International Trade Law.

Read the full text of UK-Russia BIT »

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Initial Russian Bilateral Investment Treaties - 57 Countries

Current Russian BITs -38

The BIT between the U.S. and Russia has not been ratified.