The Hague's Court of Arbitration in The Hague sentenced Russia to pay US$50 bilion to shareholders of the once biggest, but now defunct, oil producer Yukos Oil Co.

The court found that Russian officials were responsible for shareholders loss following its bankruptcy. It said that Russian President Vladimir Putin's officials manipulated Yukos Oil and sent its founder Mikhail Khodorkovsky to prison for fraud and tax evasion in 2003.

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Khodorkovsky  was once considered the wealthiest man in Russia wiht over US$15 billion in fortune. He was ranked 16th on the Forbes list of billionaires at the time. He was also Putin's biggest critic and accused the Russian president of widespread corruption in the government.

Khodorkovsky was pardoned last December after spending 10 years in prison.

Meanwhile, the claim for compensation was filed on behalf of GML, a financial holding company, which is Yukos' biggest shareholder.

According to Tim Osborne, GML's executive director, the decision of the international arbitration court is a huge step in the right direction for most of their shareholders.

"We have been fighting for this for more than 10 years, so it's a great days for us," Osborne said told the BBC.

Emmanuel Gailard, the lawyer who claimed the compensation on behalf of the shareholders, said Russian officials were motivated by something else besides forcing Yukos to go bankcrupt.

"They also sold the company assets to state owned enterprises like Rosneft and Gazprom based on political motives," Gailard told the BBC.

Meanwhile, Russian Foreign Minister Sergei Lavrov said he expects Russia to file an appeal to overturn the court's decision. He said agencies representing Russia in this case without any doubt will defend its position using all legal possibilities and contest the decision.

TagsYukos Oil Co., GML, Court of Arbitration