Major Threats to Rule of Law in Russia

Floor Speech

BREAK IN TRANSCRIPT

Ms. KAPTUR. Mr. Speaker, I rise today to discuss an issue of critical importance--the U.S. relationship with Russia.

The U.S. has a complicated bilateral relationship with Russia, which includes a number of vital global issues including ISIL, Syria, Iran's nuclear ambitions and peace in the Ukraine, among others.

However, a central aspect in the relationship that must guide all of the issues is the rule of law--and Russia has shown little respect for this essential principle.

As a Member of Congress of Polish descent and who is the co-chair and leader of a number of country caucuses in the Congress, I am well aware of Russia's sometimes unacceptable behavior on the world stage.

An important but not widely known rule of law issue, is the $50 billion arbitration brought against Russia by GML on behalf of the shareholders of Yukos Oil, whose company was illegally seized over a decade ago.

In July of 2014, a tribunal in The Hague ruled that Russia violated the Energy Charter Treaty (ECT), and awarded Yukos a $50 billion arbitration award. Since last summer, Russia has appealed the ruling, asking that it be set aside and dismissed by the Dutch Courts, a review process that could continue for 10 years.

In the decision, an independent arbitral tribunal sitting in The Hague ruled unanimously that the actions of the Russian Federation were politically motivated and constituted expropriation of the majority shareholders' investment in Yukos.

The roots of the ECT date back to political initiatives in Europe following the end of the Cold War. The fundamental aim of the ECT is to strengthen the rule of law on energy issues by creating a level playing field of rules to be observed by all governments who are signatories to the Treaty.

Mr. Speaker, Russia needs to do much better in respecting rule of law, international institutions and global treaties. The GML case is a bellwether for Russia's behavior, intentions and future actions. It will help demonstrate if Russia will truly be accountable under rule of law and serve as a constructive partner in the global community.

I urge my colleagues to learn more by reading the November 15, 2014 article in The Economist entitled, ``The Yukos affair: The chase is on.'' It is a case the U.S. Administration and Congress should follow closely to strongly support and urge adherence to the rule of law.

BREAK IN TRANSCRIPT

Source