International arbitration News, analytics and practice

9Oct/150

Misen Energy AB submits investment dispute notice to the Government of Ukraine

Misen Energy AB (publ) (“Misen”) has submitted an investment dispute notice to the Government of Ukraine under the Ukrainian Swedish Bilateral Investment Treaty (“BIT”).  Misen notified Ukraine that a dispute has arisen between it and Ukraine concerning Misen’s investment in Ukraine, and invited Ukraine to resolve the dispute by consultation and negotiation.

8Jul/130

ICSID ANNULMENT COMMITTEE DECLINE TO ANNUL ARBITRAL AWARD LEMIRE V. UKRAINE

July 08, 2013 - The ad hoc Committee issues its decision on annulment of the arbitral award in Joseph C. Lemire v. Ukraine (ICSID Case No. ARB/06/18)

The decision will be published in few days

16Mar/110

New rules of the protection of Ukraine’s state interests in international jurisdictional bodies

On March 15, 2011 the new version of the Order of protecting the rights and interests of Ukraine during the disputes, before the foreign jurisdictional authorities in cases involving a foreign entity and Ukraine came in force. The Order was approved by the Decree of the President of Ukraine.

14Mar/110

Piece! Ukraine is oriented to amicable settlement of arbitration cases

The Ministry of Justice of Ukraine that is authorized to defend state interests in foreign courts and arbitration tribunals, currently is in the negotiation process for a peaceful settlement of 7 disputes with foreign investors, stated the Minister of Justice Oleksandr Lavrynovych in an interview to "Investgazeta" (Monday, March 14, 2011).

The Minister explained that in the process of developing strategies of protection of Ukraine's interests in every case of a dispute with a foreign investor Ministry comes primarily from the possibility of a peaceful settlement.

14Feb/110

UNCITRAL improves investment arbitration. Ukraine is invited to assist

On February 7-13, 2011 UNCITRAL holds the 54th session of its Working group on arbitration. During the session important issues of settlement of disputes between investors and states have to be discussed. The Secretariat of the UNCITRAL invited Ukrainian delegation to take part in the session. The delegation is composed of representatives of the Ministries of justice, economy and foreign affairs. UNCITRAL UNCITRAL improves investment arbitration. Ukraine is invited to assist

6Dec/100

ICSID announces its tribunal’s award in Global Trading Resource Corp. and Globex International, Inc. v. Ukraine case. The claim is commercial, not the investment one!

On December 1, 2010 the arbitration tribunal of the International Centre for Settlement of Investment Disputes announced its final award in Global Trading Resource Corp. and Globex International, Inc. V. Ukraine case.

12Nov/100

Alpha Projektholding has won the investment dispute against Ukraine under ICSID rules

The Tribunal found that Ukraine conducted the expropriation of  Alpha Projektholding’s rights and interests in the 1998 and 1999 Joint Activities Agreements in violation of Article 4 of the the Agreement for the Promotion and Reciprocal Protection of Investments between the Republic of Austria and Ukraine (Compensation for Expropriation) and denied fair and equitable to Claimant’s investments in violation of Article 2 of the UABIT (Protection and Promotion of Investments).

However, the Tribunal ruled that Ukraine had not violated Article 8 of the UABIT (Other Obligations) and the national treatment obligation in Article 3 of the UABIT with respect to claimant’s investments. The recognition of violation of the Ukrainian Foreign Investment Law was declined as well.

Ukraine has been ordered to pay USD 2,979,232 with additional interest accruing from July 1, 2004, at a rate of 9.11 percent compounded annually. As stated in the Award, if payment were made on December 31, 2010, total damages owing as of that date would be USD 5,250,782.

14May/10Off

ICSID Panel Denies Ukraine’s Challenge to Arbitrator

On March 19, 2010 two members of an ICSID arbitral tribunal – the Honourable Davis R. Robinson (President) and Dr. Stanimir A. Alexandrov – dismissed the Ukraine’s challenge to the tribunal’s third member, Dr. Yoram Turbowicz, reported Investment Treaty News.

Arbitral proceedings between Alpha Projektholding GMBH (Alpha) and the Ukraine began in 2007 after the Austrian company alleged violations of the Austria-Ukraine BIT in relation to its investment in a hotel-development project in Kiev in the mid-1990s.

16Mar/10Off

Olympic v. Ukraine

“A State may not expropriate or otherwise

take in whole or in part a foreign private

investment in its territory, or take measures

which have similar effects, except …”

1992 World Bank Guidelines

on the Treatment of Foreign Direct Investment

Recently the Olympic Entertainment Group (OEG) – a Baltic group of company operating casinos in many countries – announced its intention to institute arbitration proceedings against Ukraine (http://www.kommersant.ua/). The ground for filing the claim may be the measures of the state resulted in prohibition of gambling in Ukraine. Respective law was adopted on 15 May 2009 and introduced on 25 June 2009. The above announcement was made on 10 March 2010, and already caused different comments regarding the possible outcomes of the case. Some of my colleagues  believe that the Group has no chance to win because the measure were introduced by law, and that law was not challenged before the Constitutional Court of Ukraine. However, there is an alternative opinion, that the mentioned circumstance (no case against the above law in the Constitutional Court) may not be treated as decisive for the tribunal.

casino arbitration Olympic v. Ukraine

22Feb/10Off

There are 49 ICSID claims lodged against Argentina and only 10 against Ukraine. Who is talking about inappropriate investment climate?

An overview of the investment disputes settlement mechanism under ICSID Convention

One of the chief impediments to foreign investment in Ukraine as well as in other developing countries has been the investor’s perception that, in the event of disputes with the host state, they would find themselves without an effective legal remedy. Investors may no longer realistically rely on their own governments to espouse their claims, at least promptly and successfully, under traditional avenues of diplomatic protection. Investors who proceeded alone against host states, feared discrimination in the local courts. Legal disputes between individuals or corporations were normally settled before domestic courts. States may settle their legal disputes before the International Court of Justice. However, in mixed disputes, especially arising from international investment relationships, no appropriate forum was seen to exist.

studentenkredit2 There are 49 ICSID claims lodged against Argentina and only 10 against Ukraine. Who is talking about inappropriate investment climate?

19Feb/10Off

An ICSID tribunal has found that Ukraine violated international law on tenders

An arbitration tribunal at the International Centre for Settlement of Investment Disputes (President: Juan Fern?ndez-Armesto (Spanish), arbitrators: Jan Paulsson (French), J?rgen Voss (German)) is considering the case upon the request of Mr. Joseph Charles Lemire, a national of the United States of America, filed in respect of a case against Ukraine. The case was brought under the 1994 Bilateral Investment Treaty between Ukraine and the United States. The dispute concerned the issuance and operation of radio broadcasting licenses in the Ukraine.

An ICSID arbitration tribunal has found that Ukraine violated international law on tenders by awarding radio broadcasting licences in secret in 2004 – but rejected other claims brought against the state by a US radio investor.

Source: http://www.kommersant.ua