Court clears Russia over Yukos sale

Europe’s top human rights court has ruled that Russia did not misuse legal proceedings to destroy Yukos, once its biggest oil company, in a decision that should satisfy the Kremlin.

But the former managers of the defunct firm said they had been vindicated by other parts of the ruling by the European Court of Human Rights yesterday, which said Russia had violated their right to a fair trial, although it did not rule on their demands for $100 billion (£63bn) in damages.

Yukos, which once produced more oil than the Gulf state of Qatar, was crippled with huge tax claims after its main shareholder, Mikhail Khodorkovsky, fell foul of then president Vladimir Putin’s Kremlin.

Unable to pay, Yukos filed for bankruptcy and its assets, some of the best oilfields in Russia, were sold off at state-run auctions, ending up in the hands of Russian state oil companies .

A justice ministry official insisted the ruling was a blow for Yukos’ former bosses.

Andrei Fyodorov said: “Few who understand these things would say this is negative for the Russian Federation. I am convinced that our opponents did not expect this.

“I am sure they expected a crushing decision that would grind Russia into dust and that they would be awarded $100bn and that they can run off to drink coffee. No … it is a very big blow for them.”