The Aftermath of the Hague District Court Judgment: Are the Yukos Shareholders Now Shut Out from Enforcing the ECT Awards through the English Courts?

Abstract

Following the recent judgment of the Hague District Court setting aside six Energy Charter Treaty (ECT) awards rendered against Russia in favour of the former Yukos shareholders, this article explores the potential effect of the Dutch judgment on enforcement of the underlying awards in England and Wales. English courts have consistently held that they are not bound by the setting aside of awards by the courts of the seat of arbitration. Nonetheless, recent cases demonstrate a trend that such discretion will be exercised sparingly, in accordance with the usual standards of English law applicable to the recognition and enforcement of foreign judgments. Further, in appropriate circumstances, the doctrine of issue estoppel may apply in enforcement actions before the English courts. It is, as yet, uncertain whether the fact that the awards arose under treaty will have any effect on the treatment by the English courts of the Dutch judgment.