The court did say that Russia violated the company's right to a fair trial (because it was not given enough time to prepare its defence), that some penalties were imposed wrongly and that the enforcement of the law was disproportionate. But, unexpectedly, it did not find that that Russia had abused its legal system to destroy the company.

Yet the court also found that some rules were applied retrospectively and that Yukos was given an unreasonably short time to settle the tax claims that resulted in the speedy sale of its main production asset. "The crux of Yukos's case was essentially the speed with which it was required to pay and the speed with which the auction had been carried out," said a statement issued by the court today.
The court said that the government failed to strike a balance between its legitimate aims to recover unpaid tax and its enforcement methods, which led to the destruction of one of Russia's largest corporate taxpayers. Yet the ruling failed to shed any light on the reason behind this mismatch.

The court has left the issue of compensation unresolved, leaving the two sides to negotiate between themselves first. The former managers of Yukos have demanded nearly $100 billion; the award is unlikely to be that high.

The court's finding that Yukos used deliberately complex tax arrangements, including a fraudulent use of domestic tax heavens, does not reflect on the imprisonment of Mikhail Khodorkovsy, its former head, on charges of stealing the entire oil production of Yukos. But it is a personal victory for Vladimir Putin, Russia's prime minister, who oversaw the destruction of Yukos, and for Igor Sechin, his trusted lieutenant, who many believe was its driving force.