[Congressional Record (Bound Edition), Volume 161 (2015), Part 8]
[Extensions of Remarks]
[Pages 11793-11794]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 MAJOR THREATS TO RULE OF LAW IN RUSSIA

                                 ______
                                 

                           HON. MARCY KAPTUR

                                of ohio

                    in the house of representatives

                         Monday, July 20, 2015

  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.

[[Page 11794]]

  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.

                          ____________________