Investor-State Arbitration

Russia losing battles but winning wars with foreign investors: cases overview

Russia losing battles but winning wars with foreign investors: cases overview

More often than not, foreign investors reach some success in arbitration cases against Russia. However, obtaining ultimate remuneration for their efforts usually becomes a long and evasive target, because the award either gets annulled or faces insurmountable enforcement difficulties. Many international treaties of the Russian Federation including those concluded by the USSR as its legal predecessor include a “narrow” […]

ICSID Award Favours Turkmenistan and Spurs Controversy

ICSID Award Favours Turkmenistan and Spurs Controversy

On 8 March 2016, an ICSID Tribunal dismissed the claim of a Turkish investor against Turkmenistan finding that the alleged violation of the Turkey-Turkmenistan Bilateral treaty (“BIT”) was “entirely without merit.” The arbitral award appeared to be controversial and resulted in two dissenting opinions. İçkale İnşaat Limited Şirketi v. Turkmenistan (ICSID Case No. ARB/I0/24) is the first case […]

Arbitration Claims by Ukrainian Investors under the Russia-Ukraine BIT: between Crimea and a Hard Place?
By 17 February, 2016 1 Comments Read More →

Arbitration Claims by Ukrainian Investors under the Russia-Ukraine BIT: between Crimea and a Hard Place?

In the last two years, multiple investment arbitration claims have been registered against Russia in regards to the consequences of its actions in the Autonomous Republic of Crimea and the city of Sevastopol (“Crimea”). The following cases are of particular interest: Stabil LLC and others v The Russian Federation LLC Lugzor and others v The […]

More Parties include ICC Arbitration Clauses, the Number of CIS Disputes Rising
By 22 December, 2015 0 Comments Read More →

More Parties include ICC Arbitration Clauses, the Number of CIS Disputes Rising

CIS Arbitration Forum continues its series of interviews with representatives of major international arbitration institutions working on disputes related to Russia and the CIS region. This month we interviewed Andrea Carlevaris who serves as Secretary General of the ICC International Court of Arbitration and Director of Dispute Resolution Services of the ICC. Mr Carlevaris spoke […]

Enforceability of Emergency Arbitrator Awards in Ukraine

Enforceability of Emergency Arbitrator Awards in Ukraine

In an earlier post the CIS Arbitration Forum reported on three investment treaty claims which have been initiated this year against Ukraine in the gas sector. In one of them a UK-based energy company, JKX Oil & Gas, and its Dutch and Ukrainian subsidiaries, Poltava Gas B.V. and JV Poltava Petroleum Company, obtained the first ever emergency arbitration award against […]

Remington Worldwide Limited (UK) v. Ukraine

Remington Worldwide Limited (UK) v. Ukraine

The Gibraltar registered company Remington Worldwide Limited (“Remington”) filed a request for arbitration with the SCC on 22 September 2008. According to information communicated  by the Ministry of Justice of Ukraine, the company accused Ukraine of violating several provisions of Article 10 of the ECT, and, in particular, of failure to provide effective means for the assertion of claims and enforcement of […]

Alex Genin and Others v. Republic of Estonia

Alex Genin and Others v. Republic of Estonia

The award in Alex Genin and others rendered on June 25, 2001 in the case of Alex Genin, Eastern Credit Limited, Inc., and A.S. Baltoil against the Republic of Estonia dismissed a claim brought by Mr. Genin, a national of the United States, and two companies owned by him. The case was brought under the […]

Ioannis Kardassopoulos and Ron Fuchs v. Republic of Georgia

Ioannis Kardassopoulos and Ron Fuchs v. Republic of Georgia

Two oil traders have been awarded more than US$45 million each in damages from the Republic of Georgia in an ICSID award that advances a broad interpretation of the fair and equitable treatment (FET) standard. Ioannis Kardassopoulos v Republic of Georgia, ICSID Arbitration, (No. ARB:05:18, No ARB:07:15) Award dated 3 March 2010

Oko Pankki v. Republic of Estonia

Oko Pankki v. Republic of Estonia

In OKO Pankki, three banks brought claims arising out of Estonia’a default on loan agreements which had been made to a joint venture Estonian company. In bringing their claims, the claimants asserted violations of the standard of fair and equitable treatment under the Estonia-Germnay BIT and the Estonia-Finland BIT. The tribunal rendered the award in favor […]

United Utilities (Tallinn) B.V. and Aktsiaselts Tallinna Vesi v. Republic of Estonia

United Utilities (Tallinn) B.V. and Aktsiaselts Tallinna Vesi v. Republic of Estonia

In 2001, at the request of Estonia, United Utilities (Tallinn) BV made an investment in AS Tallinna Vesi by purchasing 50.4% of the shares in the Company. This was a part of Estonia’s privatisation of AS Tallinna Vesi. The privatisation was sponsored and closely supervised by the European Bank for Reconstruction and Development (EBRD). Since […]

Bidzina Ivanishvili v. Republic of Georgia

Bidzina Ivanishvili v. Republic of Georgia

On November 30, 2012, prior to the constitution of an Arbitral Tribunal, the ICSID Secretariat received a letter from the Claimant, requesting the discontinuance of the proceeding pursuant to ICSID Arbitration Rule 44. Respondent consented. The Secretary-General issued the order on discontinuance of the proceeding. Bidzina Ivanishvili v Republic of Georgia, ICSID Arbitration (No. ARB:12:27), […]

Türkiye Petrolleri Anonim Ortaklığı v. Republic of Kazakhstan

Türkiye Petrolleri Anonim Ortaklığı v. Republic of Kazakhstan

The proceeding was concluded and the award was rendered on August 18, 2014. The award is not publicly available. More information can be found here.

AIG Capital Partners, Inc. and CJSC Tema Real Estate Company v. Republic of Kazakhstan

AIG Capital Partners, Inc. and CJSC Tema Real Estate Company v. Republic of Kazakhstan

AIG Capital Partners arises out of a Request for Arbitration by AIG Capital Partners Inc  and CJSC Tema Real Estate Company requesting for arbitration of an “investment dispute” with the Republic of Kazakhstan. The claim in the Request for Arbitration arises out of the alleged expropriation of the Claimants‟ investment in a Real Estate Development […]

Anatolie Stati and Others v. Republic of Kazakhstan

Anatolie Stati and Others v. Republic of Kazakhstan

In Anatolie Stati and others, a Stockholm Chamber of Commerce (SCC) Tribunal found that, through a “string of measures of coordinated harassment” of Claimants’ investments related to the Borankol and Tolkyn Fields and Munaibay Oil, to the Contract 302 Properties, and to the LPG Plant,” Kazakhstan violated the Fair and Equitable Treatment provision of the Energy Charter Treaty (ECT). As a […]

Hulley  Enterprises Limited (Cyprus) v. Russian Federation

Hulley Enterprises Limited (Cyprus) v. Russian Federation

Respondent filed the motion to dismiss petition to confirm arbitration awards for lack of subject matter jurisdiction under the U.S. Foreign Sovereign Immunities Act (“FSIA”). The motion was granted by the United States District Court, District of Columbia. Hulley Enterprises Limited v Russian Federation, PCA Arbitration (No. AA 226), Award dated 18 July 2014 Hulley Enterprises […]

Western NIS Enterprise Fund v. Ukraine

Western NIS Enterprise Fund v. Ukraine

Parties agreed to settle the case and proceeding was discontinued at their request. Order taking note of the discontinuance was issued by the Tribunal on June 1, 2006 pursuant to Arbitration Rule 43(1). Western NIS Enterprise Fund v Ukraine, ICSID Arbitration (No. ARB:04:2), Order dated 16 March 2006

Metal-Tech Ltd. v. Republic of Uzbekistan

Metal-Tech Ltd. v. Republic of Uzbekistan

In 2000, Metal-Tech, an Israeli public company manufacturing molybdenum products, formed a joint venture with two state-owned companies in Uzbekistan to build and operate a plant for the production of molybdenum products. Metal-Tech was to contribute its technology, know-how, and access to international markets, as well as part of the financing needed for a new […]

Mr Pugachev’s Multi-Billion Dollar Claim and One Insurmountable Hurdle
By 17 November, 2015 0 Comments Read More →

Mr Pugachev’s Multi-Billion Dollar Claim and One Insurmountable Hurdle

High-net-worth individuals tend to acquire multiple passports not only as a matter of convenience (for travel or residence purposes) but also as a form of an insurance policy, in case relationships with high-ranking official(s) deteriorate past the point of no return.  For example, an acquired nationality has been used recently to bring compensation claims under a […]

Tribunal Requests Claimants to Disclose to Turkmenistan who is Paying for Their Lawsuit

Tribunal Requests Claimants to Disclose to Turkmenistan who is Paying for Their Lawsuit

Even though third party funding is increasingly common in international arbitration, the disclosure of funding arrangements is relatively rare and is required only in exceptional circumstances. Earlier this year in Muhammet Çap & Sehil Inşaat Endustri ve Ticaret Ltd. Sti v. Turkmenistan the ICSID tribunal issued an order to compel the parties to disclose third party funding arrangements. Brief […]

Consent to Treaty Arbitration Should be Specific, not General

Consent to Treaty Arbitration Should be Specific, not General

Recently investors vigorously but unsuccessfully tried to revive an arbitral award against the Kyrgyz Republic in the Russian courts. On 20 July 2015 the Arbitrazh Court of the Moscow Circuit rejected the cassation claim of companies Stans Energy Corp. and Kutisay Mining and upheld the ruling of the Arbitrazh Court of the first instance. The court upheld […]

Kiev Arbitration Days 2015 to Take Place in November
By 19 August, 2015 0 Comments Read More →

Kiev Arbitration Days 2015 to Take Place in November

Ukrainian Bar Association invites to participate in international conference KIEV ARBITRATION DAYS 2015: Think Big! (KAD 2015). The event is scheduled for 5-6 November 2015 in Radisson Blu Hotel, Kiev, Ukraine. The KAD 2015 will bring together world-class dispute resolution practitioners and prominent arbitration experts to discuss problems and perspectives of international arbitration. The programme coordinator […]

Stans Energy and Kutisay Mining v. Republic of Kyrgyzstan

Stans Energy and Kutisay Mining v. Republic of Kyrgyzstan

Kutisay & Stans Energy v Kyrgyz Republic, Moscow Arbitration, Award Annulment, Decision dated 27 July 2015  

The Yukos Arbitration Decision in a Nutshell

The Yukos Arbitration Decision in a Nutshell

Here is a short summary of the most important points of the Yukos arbitration award which former shareholders are now trying to enforce in Belgium, France and other European countries. Diana Bentley of Lexis Nexis interviewed Yaraslau Kryvoi. What was the dispute about? The tribunal, the Permanent Court for Arbitration, constituted under UNCITRAL Rules and based in […]

Yukos Award – Beginning of a New Enforcement Saga

Yukos Award – Beginning of a New Enforcement Saga

While the recent agreement between Yukos shareholders and Rosneft settles all litigation disputes between them, it does not solve the existing disputes between Yukos and Russia as a state, in particular the $50 billion arbitration award made by the PCA in The Hague in 2014. As Russia refuses to voluntarily comply with the award, Yukos […]

Arbitrations against Ukraine and its State Bodies in Post-Revolution Period

Arbitrations against Ukraine and its State Bodies in Post-Revolution Period

2014 was one of the most difficult years in the contemporary history of Ukraine in both political and economic terms. The country lived through the Revolution of Dignity in February, the annexation of Crimea in March, the ongoing military conflict in eastern Ukraine and deep financial and economic crisis. In order to counter these difficulties and to […]

Exxon v Russia: What are the Possible Legal Outcomes?  
By 27 April, 2015 0 Comments Read More →

Exxon v Russia: What are the Possible Legal Outcomes?  

According to media reports, American oil giant ExxonMobil submitted a tax claim against the Russian Federation in arbitration at the Stockholm Chamber of Commerce (the “SCC“) at the beginning of April. The dispute concerns Exxon’s Sakhalin-1 oil and gas project in Russia’s Far East. The investor believes that it overpaid $500 million in profit taxes because a 2009 cut in the rate of profit […]

French Judgment Unenforceable Because of Lack of Legal Certainty

French Judgment Unenforceable Because of Lack of Legal Certainty

In January 2015 the Russian Supreme Court refused to enforce the Resolution of Paris Appellate Court No. RG 09/19535 dated 18 November 2010 on the collection of EUR 150,000 from the Government of Kaliningrad Region for the Republic of Lithuania. The case highlights the importance of a foreign judge giving reasons in a clear way in order for the decision to be […]

Russian Courts Reject Overly Broad Interpretation of Investment Treaty Arbitration Clause

Russian Courts Reject Overly Broad Interpretation of Investment Treaty Arbitration Clause

Arbitral tribunals in Moscow interpreted surprisingly broadly the dispute resolution provision in an investment treaty, allowing the investors to apply at unlimited number of fora at their choice. However, the Minsk-based CIS Economic Court in its decision on 23 September clarified that such provision establishes only a potential possibility of investor-state dispute resolution by international arbitration provided that the […]

The Court of the Eurasian Economic Community is Tackling Challenges of the Eurasian Integration

The Court of the Eurasian Economic Community is Tackling Challenges of the Eurasian Integration

The Eurasian Economic Community (“EurAsEC”) was founded in 2000 by Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. EurAsEC is an international organisation established to promote the process of the effective formation of the Customs Union and the Common Economic Space, as well as of other goals and objectives related to the deepening of integration in the […]

Yukos Winning Award: Will Russia Avoid Arbitral Enforcement Again?

Yukos Winning Award: Will Russia Avoid Arbitral Enforcement Again?

On 28 July 2014 a historic award in Yukos v. The Russian Federation rendered by the arbitral tribunal seated in The Hague finally became publicly available. The tribunal ordered Russia to pay more than 50 billion US$ for its expropriation of Yukos, making this award the biggest one in the history of international arbitration. Considering the circumstances, […]

Protecting Foreign Investors in Crimea: Is Investment Arbitration an Option?

Protecting Foreign Investors in Crimea: Is Investment Arbitration an Option?

Following the annexation of Crimea by Russia multiple reports suggest that there is underway a redistribution of property, which belongs not only to Ukraine but also to Ukrainian and foreign private owners. This raises the question of whether interests of foreign investors can be protected by means of international arbitration. A preliminary analysis of international public law […]

Russian Arbitration Day 2014: Arbitration in Russia Undergoing Turbulence

Russian Arbitration Day 2014: Arbitration in Russia Undergoing Turbulence

The international conference Russian Arbitration Day took place on 29 May in Moscow.  The event focused on key issues concerning the development of international commercial arbitration on Post-Soviet territory. It was the second such conference held by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation. A number […]

New UNCITRAL Arbitration Rules on Transparency and Investment Arbitration in the CIS Region

New UNCITRAL Arbitration Rules on Transparency and Investment Arbitration in the CIS Region

The April UNCTAD report on recent developments in investor-state dispute settlement shows that arbitrations under the UNCITRAL Arbitration Rules constitute 28% of the total investment disputes conducted by the end of 2013. The findings are even more important for the CIS region as many of its countries, such as the Russian Federation, Kyrgyzstan, Moldova and Tajikistan […]

Kyrgyz Republic’s Mixed Fortunes in Investment Arbitration

Kyrgyz Republic’s Mixed Fortunes in Investment Arbitration

The Kyrgyz Republic found itself on the receiving end of a flurry of investment arbitration claims a couple of years ago. While it has since successfully resolved a number of cases, it has also lost several times. This post looks at two important recent developments. The first one is three awards rendered against the Kyrgyz […]

Деконструкция компетентностного подхода арбитража при Московской ТПП в инвестиционных спорах против Киргизии
By 7 February, 2014 0 Comments Read More →

Деконструкция компетентностного подхода арбитража при Московской ТПП в инвестиционных спорах против Киргизии

Инвестиционный спор в Арбитраже Московской ТПП – А.И. Муранов

Metal-Tech v Uzbekistan: No Jurisdiction Because of Corruption
By 16 December, 2013 0 Comments Read More →

Metal-Tech v Uzbekistan: No Jurisdiction Because of Corruption

The tribunal in the recently released award in Metal-Tech Ltd. v Republic of Uzbekistan (ICSID Case No. ARB/10/3) decided not to establish its jurisdiction over an investor claim because of corruption. The dispute erupted after the termination of a raw material supply contract and cancellation of an exclusive right to export of refined molybdenum oxide. Uzbekistan won a favourable […]

Turkmenistan: Two Recent Decisions on Jurisdiction Prove that the BIT Matters
By 22 October, 2013 0 Comments Read More →

Turkmenistan: Two Recent Decisions on Jurisdiction Prove that the BIT Matters

This summer ICSID tribunals resolved jurisdictional challenges in two cases arising out of construction projects in Turkmenistan. In Kilic Insaat Ithalat Ihracat Sanayi ve Ticaret Anonim Sirketi v Turkmenistan (ICSID Case No. ARB/10/1) the tribunal decided that it does not have jurisdiction. It held that the investor failed to litigate its claims in the Turkmen courts […]

ABA Conference – Is Russia Becoming More Arbitration-Friendly?
By 5 October, 2013 0 Comments Read More →

ABA Conference – Is Russia Becoming More Arbitration-Friendly?

The ABA’s Fifth Annual Conference on the Resolution of the CIS-Related Business Dispute took place on 27 September 2013 in Moscow. More than 140 delegates from around the globe attended the conference, which featured six panels and a set of mock hearings in a complex cross-border dispute. The conference’s panels covered a broad spectrum of […]

The Value of Expropriated Oil Assets Arbitrated at ICDR Y&I Seminar in Moscow
By 29 September, 2013 0 Comments Read More →

The Value of Expropriated Oil Assets Arbitrated at ICDR Y&I Seminar in Moscow

On 26 September the International Centre for Dispute Resolution Young & International (ICDR Y&I) held a seminar on damages in international arbitration on the premises of the Independent Arbitration Chamber, Moscow. The discussion focused on two issues: (i) valuation date and (ii) pre-award interest. Ms Noradèle Radjai (member of the Executive Board of ICDR Young […]

ICSID Rejects Denial of Justice Claims against Kazakhstan in a Recently Released Award

ICSID Rejects Denial of Justice Claims against Kazakhstan in a Recently Released Award

Last week ICSID released a redacted version of a 2010 award in Liman Caspian Oil B.V. and NCL Dutch Investment B.V. v. Kazakhstan.  While both the facts of the case and the parties’ positions have been redacted, the remaining parts of the award provide illuminating analysis of such issues as legality of the investment as a […]