header-logo header-logo

23 February 2012 / Richard Lang
Issue: 7502 / Categories: Features , Public , Tax
printer mail-detail

Right end, wrong means

Richard Lang follows the winding path of the Yukos v Russia case

Hyped as the biggest claim ever submitted to the European Court of Human Rights (ECtHR), in 2004 the oil giant Yukos took the Russian government to Strasbourg, alleging violations of its fair trial and property rights. This followed the initiation by the Russian Tax Ministry of litigation which lasted two years and which culminated in the bankruptcy and liquidation of the company in 2006. The ECtHR reached its decision on 20 September 2011 in OAO Neftyanaya Kompaniya Yukos v Russia (App No 14902/04).

Complicated hierarchy

The applicant, Yukos, was at the centre of a complicated hierarchy of parent companies and diverse subsidiaries. In particular, 22 “trading companies” had been set up in low-tax areas of Russia, which then “commissioned” Yukos to buy crude oil and sell it, either before or after processing, on their behalf. These companies then declared the tax on income received by Yukos.

The saga began on 14 April 2004 when the Tax Ministry, having declared the 22 companies to be “sham companies”, made

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
back-to-top-scroll