Russian oligarch Mikhail Fridman has filed a lawsuit against Luxembourg in an international arbitration case seeking compensation of nearly 15 billion euros. This legal battle unfolds as Fridman aims to recoup billions of euros after the country froze his assets when he was hit with EU sanctions.
Luxembourg Confirms Lawsuit
The Prime Minister’s office confirmed on Wednesday that Russian oligarch Mikhail Fridman has initiated an international arbitration case against Luxembourg. Fridman is seeking compensation after his assets were frozen when he was targeted by EU sanctions. A spokesperson for the Luxembourg Times stated, “We can confirm that Mr. Mikhail Fridman has launched an international arbitration against the Grand Duchy of Luxembourg in this matter.” The spokesperson declined to provide further details on the lawsuit. The legal action was filed on Tuesday, and Fridman has proposed for the arbitration to take place in Hong Kong, as reported by the International Arbitration Review. This would be the first arbitration case of its kind that Luxembourg is facing under a 1989 treaty signed between the country, the Soviet Union, and Belgium, which protects investors’ assets against expropriation, nationalization, or any other similar measures.
Luxembourg Faces Significant Financial Claim
This legal dispute stems from an article published in May by the Russian newspaper Vedomosti, revealing that Mikhail Fridman is seeking compensation of 15.8 billion dollars (14.6 billion euros) for his frozen assets from Luxembourg. The amount requested by Fridman represents over half of Luxembourg’s annual budget for the current year. According to the International Arbitration Review, Fridman is represented by a team of lawyers that includes Cherie Blair KC, the wife of former British Prime Minister Tony Blair. Luxembourg has not yet appointed legal representation in response to the lawsuit.
Fridman’s Allegations of Injustice
Mikhail Fridman, a Russian co-founder of the investment company LetterOne Holdings based in Luxembourg, contends that Luxembourg’s decision to enforce EU sanctions against him following Russia’s invasion of Ukraine in 2022 constitutes a “serious injustice” and a violation of international law. In April, the European Union’s General Court in Luxembourg overturned the sanctions against Fridman and his co-founder Petr Aven, ruling that their inclusion on the list of sanctioned Russian entities was unjustified.
Legal Ramifications and Recourse
The European Union’s General Court’s decision to annul the sanctions against Fridman and LetterOne can be appealed to the European Court of Justice, the highest judicial authority in the EU. Following the Russian aggression in Ukraine, Fridman and other Russian executives at LetterOne resigned from their positions within the investment company, which was not directly impacted by the sanctions. They relinquished all roles within the company in March 2022.
Looking Ahead
As this legal battle between Mikhail Fridman and Luxembourg continues to unfold, the outcome will have significant implications for international arbitration and the protection of investors’ rights. The case highlights the complexities of navigating legal disputes across borders and the importance of upholding international law in resolving such matters. The involvement of high-profile legal representatives adds another layer of intrigue to the proceedings, underscoring the stakes involved in this multi-billion euro lawsuit.
In Conclusion
The legal battle between Russian oligarch Mikhail Fridman and Luxembourg over frozen assets and EU sanctions underscores the complexities of international arbitration and the protection of investors’ rights. With billions of euros at stake, this case will have far-reaching implications for both parties involved. As the legal proceedings unfold, the world will be watching closely to see how this high-profile dispute is resolved.