THE owners of Yukos, the former Russian energy giant, are to demand more than $50billion (£26 billion) in compensation from the Russian Federation following the disintegration of the company.

GML, formerly called Group Menatep, is the majority shareholder in Yukos and it is bringing the Energy Charter Treaty Claim, the world’s largest investment lawsuit, against the Kremlin.

The damages being sought were previously estimated at $30 billion, but The Times has learnt that this is to rise to about $50 billion.

The case is being heard by the United Nations Commission on International Trade Law in the Hague.

Yukos was founded by Mikhail Khodorkovsky in 1993 and acquired vast assets through privatisations that many Russians felt were rigged.

The company quickly became a powerhouse comprised of oil refineries, pipelines and oil and gas fields across Central Europe and Russia.

When Mr Khodorkovsky started supporting the political rivals of Vladimir Putin, the Russian President, Yukos was hit with massive tax demands and Mr Khodorkovsky was thrown in a Siberian jail.

The crown jewel of Yukos was Yugansk, which was confiscated by Russian tax authorities and days later sold to Rosneft, which floated in July at a value of $80 billion.

The Energy Charter Treaty Claim is seeking damages from the Russian Government and accuses the Kremlin of discriminatory treatment against the company. The previous valuation of damages was based on the value of Yukos when the oil price was $30 a barrel. It has since risen to more than $70.

Tim Osborne, a director of GML, said: “We would have sold out of Yukos at this higher price, so when our accountants are finished working out the numbers I think the claim will be closer to $50 billion.”

GML has attempted to negotiate a settlement with Russia but Mr Osborne says they have received no response.

The company has decided to abandon attempts to settle until after next year’s Russian elections, when President Putin is due to stand down.

“The next big issue is that of jurisdiction, because the Russians claim that they are not bound by the court’s findings,” Mr Osborne said. “This is clearly not the case, and if we get through this part of the case we think we will win on the substance of our argument.”

Yukos is now in two parts, with the Russian assets under administration and likely to be sold, probably to Rosneft and Gazprom. The foreign assets are held by a Netherlands-based holding company and these too are being sold off to return cash to GML and pay debts.

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