Summary

Memorandum Opinion

Over four years ago, proceedings in this case were stayed, at the request of petitioners Hulley Enterprises Ltd. ("Hulley"), Yukos Universal Ltd. ("Yukos"), and Veteran Petroleum Ltd. ("VPL") (collectively, the "Shareholders"), who had initiated this lawsuit almost two years earlier to enforce three arbitral awards (the "Awards"), awarding them over $50,000,000 from respondent the Russian Federation, due to the latter's alleged expropriation of Yukos Oil Company ("Yukos"), a large Russian oil company, in which the Shareholders were the majority owners. See Order (Sept. 30, 2016) ("2016 Stay Order"), ECF No. 153 (granting stay); Hulley Enters. Ltd. v. Russian Fed'n ("Hulley"), 211 F. Supp. 3d 269, 280­88 (D.D.C. 2016) (explaining reasons for stay). The stay was to extend until the earlier of "January 21, 2019, or until resolution of proceedings in the Netherlands" initiated by the Russian Federation just fifteen days before the filing of this confirmation lawsuit, "to set aside the arbitral awards at issue (the `Set-Aside Proceedings')." 2016 Stay Order at 2. After two extensions jointly requested by the parties, see Joint Mot. Extend Stay (Dec. 27, 2018), ECF No. 171 (jointly requesting stay extension until Jan. 21, 2020); Joint Status Report (Oct. 10, 2019), ECF No. 175 (jointly requesting stay extension until May 20, 2020), were granted, see Min. Order (Dec. 27, 2018); Min. Order (Oct. 10, 2019), the stay lapsed on May 20, 2020, though the Dutch set-aside proceedings, which warranted the original stay, remain ongoing, having now progressed to the highest court in that country.

Now, in an about-face, the Russian Federation, which vehemently opposed the 2016 Stay Order, seeks a second stay pending the Dutch Supreme Court's review of the judgment rendered by the Dutch Court of Appeal in February 2020. Resp't Russian Fed'n's Mot. Extend Stay of Litig. ("Resp't's Mot."), ECF No. 179; Resp't's Mem. P. & A. Supp. Mot. Extend Stay of Litig. ("Resp't's Mem.") at 1, 8, ECF No. 179-1. The Shareholders vigorously oppose any further stay as unwarranted and, if a second stay is imposed, request that the Russian Federation be required to post "suitable security." Pet'rs' Opp'n Resp't's Mot. Extend Stay Litig. ("Pet'rs' Opp'n") at 11­37, 38­45, ECF No. 181. Despite the obvious irony in the parties' flipped positions and palpable frustration on the part of the Shareholders in further delay in resolving this matter, as explained below, considerations of judicial economy, the balance of hardships and international comity require that the Russian Federation's motion to impose a second stay be granted.