Overview
On Monday, an arbitral tribunal of eminent international jurists awarded USD 52 billion to Yukos shareholders for breach of the Energy Charter Treaty. McDermott partner Dr. Sabine Konrad was interviewed for German prime time news and comments on the awards. International investment tribunals but also the European Court of Human Rights are important for the enforcement of the international rule of law. They fulfill a role which on the national level is played by constitutional courts: the protection of individual rights and rule of law standards. Investment arbitration is one of the most transparent dispute resolution mechanisms – which is demonstrated by the Yukos cases. Investment arbitration awards are binding on the parties and enforceable worldwide under the New York Convention (for example in the Yukos cases which were under the UNCITRAL Rules) or the Washington Convention in the case of ICSID awards. The challenge for the Yukos shareholders will be enforcement.