Ukraine wins at international arbitration tribunal on US companies' claim worth $34.8 m

Dec 06 2010

An international arbitration tribunal has rejected a claim by U.S. companies Globex International, Inc and Global Trading Resource Corp. against Ukraine for a total of $34.8 million, declaring the claims unreasonable, the press service of the Justice Ministry of Ukraine has said, with reference to Justice Minister Oleksandr Lavrynovych.

The relevant decision by the International Centre for the Settlement of Investment Disputes was dated December 1, 2010.

According to a press release, the claim of Globex International, Inc and Global Trading Resource Corp. includes the accusation that Ukraine violated Article II (1), II (3) (a)-(c) and III of the treaty between Ukraine and the United States on the attraction and reciprocal protection of investments of March 4, 1994.

The arbitration tribunal agreed with Ukraine's objection in connection with "the apparent absence of the claims' validity from the standpoint of the jurisdiction of the International Centre for Settlement of Investment Disputes".

Lavrynovych said Ukraine was the first party in the history of the center to win an investment dispute under Arbitration Rule 41 (5) of the International Centre for the Settlement of Investment Disputes.