Paris Court of Appeal unfreezes assets

23rd November 2016

The First President of the Paris Court of Appeal upheld lifting of the attachments by Hulley Enterprises of sums due by Eutelsat to RSCC.

The First President of the Paris Court of Appeal upheld lifting of the attachments by the Hulley Enterprises company (ex-shareholder of Yukos) of sums due by Eutelsat to RSCC (Russian Satellite Communications Company).

In a judgment of 15 April 2016 the enforcement judge of the District Court of Paris ordered the lifting of the attachments applied upon application of the offshore Cyprus company, Hulley Enterprises (ex-shareholder of Yukos).  The attachments had been freezing amounts due by Eutelsat to RSCC in connection with their satellite commercial cooperation.

These attachments were based on the arbitration awards of 18 July 2014 rendered in connection with the Yukos matter and voided on 20 April 2016 by the Hague Court.

Hulley appealed this judgement and moved for a stay of execution of such lifting of the attachment.

In its judgment of 23 November 2016 and contrary to the position maintained by the public prosecutor at the time of arguments on 2 November 2016, the First President of the Paris Court of Appeal held that the attached assets did not belong to the Russian Federation but to RSCC, which could not be held liable for any debts that could be due by the Russian Federation.

The attached sums have been ordered to be released.