Evgeny Arbuzov commented on the settlement agreement between Rosneft and Minenergo

Rosneft, Minenergo, and Rosnedra signed an agreement in a dispute about the benefits of the export duties for the Verkhnechonskoye field. According to people close to the adversaries in the suit, Rosneft took the initiative to conclude the settlement. One of them said that Rosneft had refused to receive the benefits, but a representative of Rosneft refused to comment. Rosnedra is satisfied with the court’s decision, according to a representative of the Natural Resources Ministry. A representative of the Ministry of Energy declined to comment, and a representative of the Finance Ministry did not respond to the request.

A partner in the ART DE LEX law firm, Evgeny Arbuzov, noted that it was important for Rosneft to avoid the cancellation of the judicial acts of the appellate and cassation instances and to uphold the decision of the court of first instance in favor of the Ministry of Energy. “Based on the information available to the public,” Arbuzov explained, “the concluded settlement confirms the findings of the appellate and cassation courts, and the sides only stated that they have lost the possibility to execute the decisions.” Now, to get confirmation of eligibility, a requesting side has to inquire within a few years after the production of “discounted” crude oil (the court of first instance denied this). That, according to Arbuzov, might be Rosneft’s purpose for agreeing to the settlement. The same thing may happen with the Bashneft fields and any other fields that Rosneft had purchased.