Some Reflections on Arbitration in the Yukos v. The Russian Federation

Abstract

In an extraordinary arbitration proceedings recently concluded, the Tribunal found that the respondent State breached its obligations under the Energy Charter Treaty and ordered Russia to pay damages in excess of USD 50 billion to the former Yukos shareholders. This article considers the application of the principle of clean hands in the Yukos v. The Russian Federation case. The arbitral Tribunal held that the said principle does not form a part of positive international law and therefore it was not applicable in the present dispute. The principal aim of the article is to critically analyze the arbitral Award concerning the principle of clean hands. Additionally, the contribution also discusses the costs of the Yukos arbitrations.