Battle of Kensington: Property plot snatched in first charge against Russian homes
For the first time, a plot of London real estate belonging to the Russian Federation has been seized by the former shareholders of a defunct Russian oil giant.
Amid a $60bn (£47bn) legal battle, a prime plot of London real estate belonging to the Kremlin – the Russian government – has been grasped by former shareholders of defunct oil giant Yukos.
Located at 245 Warwick Road in Kensington, the plot of land was bought by the Russian Federation in 2006 for £8m. According to calculations from The Telegraph, properties on the site are said to cost around £200m.
However, Transparency International, a global movement to end the injustice of corruption, has estimated that £1.1bn worth of London property owned by Russians has been accused of corruption or with links to the Kremlin.
In 2003, Yukos was illegally seized by the Kremlin on grounds of tax evasion after the organisation’s former boss, Mikhail Khodorkovsky, fell out with Vladimir Putin.
Following this, the major Russian oil firm filed various claims in international courts seeking compensation for their expropriation, and in 2014 a Dutch court ordered Russia to pay them more than $50bn (£40bn) – a decision Russia is still fighting.
Commenting on the news, Tim Osborne, chief executive of GML, which through its subsidiaries was the majority shareholder of Yukos, said: ‘This historic first charge over Russian property in England is a testament to our commitment to hold Russia accountable for its actions by pursuing Russian state assets worldwide until justice is done.
‘Russia makes it a point to ignore court judgments, making it very difficult if not impossible for its victims to get justice.’
Against this backdrop, Russia has argued that their motives were protected by sovereign immunity, but this claim was rejected, and the London High Court ordered Russia to reimburse Yukos for its legal costs.
Yet, Russia ultimately failed to pay these costs, and shareholders were able to obtain a charging order over the real estate.
The Russian Federation has the right to challenge the interim order at a hearing on 12th April, however, should they fail, the former Yukos shareholders will acquire ownership of the land.
Image: aukett swanke