The tribunal of ICSID has issued a decision in favour of Turkmenistan in the dispute with the Turkish company

The tribunal of ICSID has issued a decision in favour of Turkmenistan in the dispute with the Turkish company

The tribunal of the International Centre for Settlement of Investment Disputes (ICSID) issued on May 4, 2021 a final decision on the case of the Turkish company "Sehil". In the given decision the tribunal has rejected all claims on the claims of the case.

The dispute has arisen because of alleged intervention of Turkmenistan in the company’s investment. Claimants asserted that Turkmenistan has broken the bilateral investment treaty (BIT), having taken measures concerning 31 building contracts. Claimants demanded indemnification almost in the amount of 500 million dollars.

In its decision the arbitration court has established that according to BIT it had jurisdiction only for consideration of the claim of the company about expropriation which it has rejected.

In particular, the court has unanimously decided that claimants cannot rely on the contractual provision on the most favoured nation status to get access to more favourable standards of protection provided by other contracts, concluded by Turkmenistan. The court also has refused to consider any claims following directly from the basic building contracts, whether it be presented by claimants or by the defendant as counterclaims.

Thus, this arbitration trial which lasted for 10 years was solved in favour of Turkmenistan.

ICSID - International Centre for Settlement of Investment Disputes - one of the independent international establishments which, along with the International Finance Corporation, Multilateral Investment Guarantee Agency and the World Bank, enter the Group of organisations of the World Bank, being specialised institution of the United Nations. Purpose of ICSID is maintenance of legal possibilities for reconciliation of the parties and for arbitration procedures in the international investment disputes.