The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“YUKOS OIL COMPENSATION” mentioning the U.S. Dept of State was published in the Senate section on pages S4945 on July 12, 2012.
The publication is reproduced in full below:
YUKOS OIL COMPENSATION
Mr. INHOFE. Mr. President, Russia's weak rule of law is bad for the people of Russia, of course, but it also harms American citizens. As Congress considers legislation directed at strengthening human rights and the rule of law in Russia, we also should address the economic impact on Americans, including those Americans who are owed $12 billion when Yukos Oil, in which they held 15 percent of its stock, was expropriated by the Russia Government. To date, none of the American owners of Yukos caught up in Russia's renationalization of this company has received any compensation for this unlawful taking. And without a bilateral investment treaty, BIT, with Russia, the only recourse available to U.S. investors is for our State Department to espouse the case of its wronged citizens. I support this course of action, and I ask unanimous consent to have printed in the Record a letter I wrote with Senator Scott Brown to Secretary Clinton last October 27, 2011, that addresses this issue.
There being no objection, the material was ordered to be printed in the Record, as follows:
U.S. Senate,
Washington, DC, October 27, 2011.Hon. Hillary Rodham Clinton,Secretary of State, Department of State, C Street, NW.,
Washington, DC.
Dear Madam Secretary: We are writing to ask that you seek compensation from Russia on behalf of hundreds of thousands of U.S. investors who have lost approximately $12 billion as a result of Russia's expropriation of Yukos Oil Company. With all other avenues exhausted for American investors, only espousal by the United States can help to bring this matter to an appropriate resolution.
American investors collectively owned approximately 15 percent of Yukos at the time the Russian authorities began dismantling the company. The American investors in Yukos included several public pension funds and more than 70 institutional investors in at least 17 States. There also were over 20,000 individual American investors who owned Yukos shares directly, in addition to the hundreds of thousands who owned shares indirectly through mutual funds.
These investors have valid claims against Russia under international law, but they have no mechanism to assert these claims because there is no bilateral investment treaty (BIT) in force between the United States and Russia. Other foreign owners of Yukos have been able to initiate BIT claims, and a UK investor recently won such a case. In a unanimous decision, the arbitrators in the UK case concluded that Russia had expropriated Yukos and that compensation was due.
In June 2008, American investors formally petitioned the State Department to undertake government-to-government negotiations with Russia. We respectfully ask that you espouse the claims of these Americans and seek payment from the Government of Russia as soon as possible.
Thank you for your consideration of our concerns. We look forward to hearing from you.
Sincerely,James M. Inhofe,
U.S. Senator.Scott Brown,
U.S. Senator.
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