The Moscow Arbitration Court earlier passed a similar verdict but had to re-examine the case after Russia's Supreme Arbitration Court ordered a retrial.
On September 30, 2003, France-based financial services company Societe Generale extended a $1.6 billion loan to Yukos on the condition that the oil company would repay it ahead of schedule if there was any threat of default. When Yukos ran into difficulties, Societe Generale demanded that the remaining debt, totaling $655.25 million, be redeemed early.
Yukos, which was declared bankrupt on August 1, 2006 after three years of litigation with tax authorities over arrears, failed to honor its obligations, after which Societe Generale reassigned its claims on an outstanding loan to Moravel Investment Ltd., a subsidiary of Group Menatep, the investment vehicle used by Yukos' founders to control the oil company.
Moravel Investment Ltd. turned to the London arbitration tribunal, which ruled on September 16, 2005 to charge Yukos $681 million. The oil company rejected the arbitration judgment and Moravel applied to the Moscow Arbitration Court to enforce the ruling by the London arbitration tribunal on Russian soil.
