Suing the Kremlin: A Tale of Power, Wealth, and Justice
In the world of international law, few cases have captured the imagination quite like the battle between Mikhail Khodorkovsky and Vladimir Putin. This is a story of ambition, corruption, and the pursuit of justice, and it's one that Martin Sixsmith's book, Suing the Kremlin, brings to life with remarkable insight and commentary.
The tale begins in the chaotic post-Communist 1990s, where a young Khodorkovsky, once a member of the Komsomol Communist youth organization, emerged as a powerful figure in Russian business. With a fortune of $15 billion, he was Russia's richest man, having built the oil and gas giant Yukos. But this success came at a price. Putin, then president, had a message for the oligarchs: loyalty would be rewarded, and disloyalty would be met with ruthless retribution.
The turning point came in 2003 when Khodorkovsky, in a bold move, stood up and criticized Russia's corruption and its 'thieves' economy' in a televised meeting with the president. This act of defiance led to his swift downfall. By November of that year, he was under arrest for fraud, and Yukos was hit with huge tax offense charges. The business was declared bankrupt in 2006, and Khodorkovsky and his associate Platon Lebedev were put on trial, convicted, and spent nine years in labor camps.
What makes this story even more intriguing is the legal battle that followed. With the guidance of specialist lawyers, Khodorkovsky and Yukos' holding company, Group Menatep, opened a case against the Kremlin using an arcane but effective piece of international commercial law, the Energy Charter Treaty. This treaty, designed to protect investors in oil and gas industries from unfair treatment by national governments, became the vehicle for an unswerving pursuit of the Kremlin by Menatep's lawyers over the following 19 years.
The result? A record award of $50 billion against the Russian state in 2014. However, this victory was not to last. In 2016, the award was set aside on appeal by a Dutch district court, but in 2020, the Dutch Court of Appeal ruled again in Menatep's favor. In 2025, the Supreme Court of the Netherlands rejected Russia's last appeal, leaving the Kremlin with a significant financial blow.
What makes this case even more fascinating is the broader implications. The state and its leader have continued to consolidate their reputation as criminal and belligerent, making it difficult to seize Russian assets. The process has often been stalled in the courts of fearful jurisdictions like Belgium and France. However, the US and English courts have been more robust, and an auction of Stolichnaya and Moskovskaya vodka trademarks has brought in the first tranche of money.
So, what does this story tell us? For one, it highlights the power of the law to hold even the most powerful leaders accountable. It also serves as a reminder that the pursuit of justice can be a long and arduous journey, often requiring the determination of individuals like Khodorkovsky and the guidance of skilled lawyers. But perhaps the most ironic consequence of Putin's reign is that at this moment, the leader of Russia's would-be empire is under threat in many ways, from the prospect of a Ukrainian drone carrying a couple of kilos of C-4 to the loss of the loyalty of once-compliant oligarchs.
In my opinion, this book is a must-read for anyone interested in international law, Russian politics, or the pursuit of justice. It's a compelling tale that raises important questions about power, wealth, and the rule of law. And while the outcome of the legal battle may be uncertain, the story of Suing the Kremlin is one that will continue to resonate for years to come.
