Dmitry Chernyy on Yukos v SamaraNefteGaz

When Yukos Capital tried to enforce the award SamaraNefteGaz claimed among other thing, that the new arbitration clause was invalid because the director of SamaraNefteGaz, who signed new agreement, did not act in the interests of the company but ‘following the orders of the management of Yukos Oil’ and, therefore, it was an abuse of rights. Dmitry Chernyy defended SamaraNefteGaz.

Dmitry Chernyy, partner

Muranov, Chernyakov & Partners
+7 495 783-74-50

I believe that the supplementary agreements which transferred the case to New York were invalid because of the abuse of rights by Yukos. No one was interested in the agreements except for Yukos itself. In the award it was stated that the parties were properly notified. But when we studied the documents we found that it was not so. Essentially, Yukos sent notices to itself in Moscow and not to Samara where the company was located.

Though the directors of SamaraNefteGaz had formal authority, they did not follow the procedure for entering such agreements as was established in the company.