INTRODUCTION

1. Three shareholders of Yukos Oil Corporation OJSC (“Yukos”)—Hulley Enterprises Limited (“Hulley”), a company organized under the laws of Cyprus, Yukos Universal Limited (“YUL”), a company organized under the laws of the Isle of Man, and Veteran Petroleum Limited (“VPL” or “Claimant”), a company organized under the laws of Cyprus (collectively, “Claimants”)—initiated arbitrations against the Russian Federation (“Respondent,” “Russian Federation” or “Russia”) which together with Claimants constitute the “Parties.”

2. The three arbitrations were heard in parallel with the full participation of the Parties at all relevant stages of the proceedings. Mindful of the fact that each of the three Claimants maintains separate claims in separate arbitrations that necessitate separate awards, the Tribunal nevertheless shall discuss these arbitrations as a single set of proceedings, except where circumstances distinct to particular Claimants necessitate separate treatment. Thus throughout Parts I to VI, the introductory portions of this Interim Award, the plural “Claimants” is used collectively for Hulley, YUL and VPL. In Parts VII, VIII and IX, the Issues, Analysis and Decision portions of this Interim Award, the singular “Claimant” refers specifically to YUL.

I. PROCEDURAL HISTORY

A. COMMENCEMENT OF THE ARBITRATION PROCEEDINGS

3. On 2 November 2004, all three Claimants delivered to the President of Russia notifications of claim with respect to Russia’s alleged violation of obligations said to be owed to Claimants’ investments in Russia under the Energy Charter Treaty (“ECT” or “Treaty”)1 and sought to settle the disputes amicably pursuant to Article 26(1) of the ECT.