Yukos shareholders were awarded $50bn compensation last year, where the Russian Government lost a case in the International Court where the Russian Government bankrupted Yukos and sold it to state owned Gazprom, for a nominal amount, when the head of Yukos, Mikhail Khodorkovsky, fell out with Putin and was jailed on 'political' grounds.
Now Russia has no intention of giving 1c to Yukos shareholders, so now they are enforcing the settlement through the counts, like any other debt, in every country where Russia has state assets and their is a reasonable chance of recovery of the money. This week Russian state assets have been frozen in Belgium and France as the first stage in the recovery process. Now this is small fry compared to other countries, like the Western head offices of Gazprom in Germany, not to mention the Nord stream pipeline that supplies Germany with all their Russian gas.
Now Putin has lost his rag over this and has ordered the French and Belgium Governments to overrule their courts. This shows that he doesn't understand that, unlike Russia, in democracies, the courts and legal system operates independently of governments, especially in civil cases like this. Putin is now threatening to break the Vienna convention by seizing the Belgian and French embassies and their assets.
Now as this is a civil case, the countries where this action is being taken means that Governments can do nothing as it is a legal process that applies to all debts and even if they could, probably wouldn't want to anyway with Putin's recent piss-take over International Law and Western Security norms that are enshrined in the 1975 Helsinki Final Act.
Western companies, can see the writing on the wall and are already trying to sell any assets they have in Russia and anybody with any investments directly or indirectly through pension or other funds would be well advised to review their exposure.
So all Russian assets, goods and chattels in any Western country are vulnerable to being frozen and seized. Now this is going to run and run and get very interesting, so get in your buckets of popcorn and enjoy Putin and Russia squirming as almost as much as I will.
Now if Putin decides to turn this into an all out trade war there will be only one outcome for a $1tn GDP economy against at least $44tn of those that currently apply sanctions to Russia and possibly much more. A Greek style 25% percent GDP depression in Russia would relate to 0.57% loss of growth to Western economies. Now Russia has already turned to their ally China for help in supporting their banks with loans and China has said no, where it is not in their national interest. China know which side of their export bread is spread with butter and jam and it is not the faltering $1tn economy one.
Did I mention that at the current burn rate the Russian Government will run out of sovereign reserves in 2016 and cannot borrow due to sanctions. By 2017 their country and economy will be in desperate trouble, which is the 100th year anniversary of the Russian revolution, started by lack of bread in St Petersburg. Did I also mention that Russia has to import between 25 and 50% of their food, which are all traded and paid for in USD.
http://www.bbc.co.uk/news/world-europe-33197782
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Topic: If you don't pay your debts! (Read 1095 times)