MOSCOW, July 17 (RIA Novosti) - The Moscow Arbitration Court rejected Monday a suit filed by Moravel Investment Ltd. to enforce a decision by a London arbitration tribunal to recover $680 million from Yukos oil company.
On September 30, 2003 Societe Generale Bank extended Yukos a $1.6 billion loan. Under the loan agreement, the bank may demand early repayment if there is a threat of default. When Yukos ran into financial difficulties, Societe Generale demanded that it repay the remaining $655.25 million.
Yukos, beset by the tax claims of Russian authorities, failed to meet its obligations, and Societe Generale re-assigned its claim to Moravel Investment Ltd., which took the case to an arbitration tribunal in London.
On September 16, 2005, the tribunal ruled to recover about $680 million from Yukos together with accrued interest.
Moravel is now trying to enforce this ruling on Russian soil.
