Turkmenistan

Turkmenistan

NO. Year of initiation Short case name Full case name Applicable IIA Arbitral rules Administering institution Summary Details of investment Outcome of original proceedings Respondent State Home State of investor Economic sector Economic subsector Arbitrators Amount claimed Amount awarded (or settled for) Breaches alleged Breaches found Decisions Individual opinions Follow-on proceeding type Follow-on proceeding status Follow-on decisions Follow-on individual opinions ICSID annulment committee members
1 2018 MTS v. Turkmenistan (II) Public Joint Stock Company Mobile TeleSystems v. Turkmenistan (II) (ICSID Case No. ARB(AF)/18/4) Russian Federation - Turkmenistan BIT (2009) ICSID AF ICSID Investment: Ownership of MTS-Turkmenistan (100 per cent shareholding), a local subsidiary holding telecommunication licences.

Summary: Claims arising out of alleged actions by the Government and state-owned entities that forced the claimant’s subsidiary to suspend its business operations in the country.
Ownership of MTS-Turkmenistan (100 per cent shareholding), a local subsidiary holding telecommunication licences. Pending Turkmenistan Russian Federation Tertiary: J - Information and communication 61 - Telecommunications Elsing, S. H. - President

Patocchi, P. M. - Claimant

Townsend, J. M. - Respondent
750.00 mln USD Data not available Data not available Pending None None None None None None None
2 2018 SECE v. Turkmenistan SECE İnşaat ve Ticaret A.Ş. v. Turkmenistan (ICSID Case No. ARB/18/34) Turkey - Turkmenistan BIT (1992) ICSID ICSID Investment: Contracts for the construction of residential and government buildings.

Summary: Claims arising out of the Government’s termination of construction contracts with the claimant, non-payment of fees and harassment of the claimant’s employees, including by means of travel bans.
Contracts for the construction of residential and government buildings. Pending Turkmenistan Turkey Tertiary: F - Construction 41 - Construction of buildings Name not available - President

Johnson, O. T. - Claimant

Name not available - Respondent
Data not available Data not available Data not available Pending None None None None None None None
3 2018 Unionmatex v. Turkmenistan Dirk Herzig as Insolvency Administrator over the Assets of Unionmatex Industrieanlagen GmbH v. Turkmenistan (ICSID Case No. ARB/18/35) Germany - Turkmenistan BIT (1997) ICSID ICSID Investment: Contracts with a state-owned agricultural company for the construction of several grain production facilities and bakeries.

Summary: Claims arising out of the Government’s alleged interference with the claimant’s construction projects and a state-owned company’s failure to make payments to the claimant, which led to delays and the halting of construction works. A local court subsequently terminated the claimant’s construction contracts, allegedly resulting in the claimant’s insolvency.
Contracts with a state-owned agricultural company for the construction of several grain production facilities and bakeries. Pending Turkmenistan Germany Tertiary: F - Construction 41 - Construction of buildings Name not available - President

Voser, N. - Claimant

Sands, P. - Respondent
Data not available Data not available Data not available Pending None None None None None None None
4 2017 Lotus v. Turkmenistan Lotus Holding Anonim Şirketi v. Turkmenistan (ICSID Case No. ARB/17/30) Turkey - Turkmenistan BIT (1992)

The Energy Charter Treaty (1994)
ICSID ICSID Investment: Investments in two electric power plants and a refinery.

Summary: Claims arising out of the Government’s alleged failure to make a retention payment for the construction of two 254-megawatt electric power plants, and of unlawfully terminating the agreement relating to the refinery.
Investments in two electric power plants and a refinery. Pending Turkmenistan Turkey Secondary: C - Manufacturing

Tertiary: D - Electricity, gas, steam and air conditioning supply
19 - Manufacture of coke and refined petroleum products

35 - Electricity, gas, steam and air conditioning supply
Lowe, V. - President

Boykin, J. H. - Claimant

Stern, B. - Respondent
Data not available Data not available Data not available Pending None None None None None None None
5 2016 Görkem Inşaat v. Turkmenistan Görkem Inşaat Sanayi ve Ticaret Limited Şirketi v. Turkmenistan (ICSID Case No. ARB/16/30) Turkey - Turkmenistan BIT (1992) ICSID ICSID Investment: Investments in the construction of a shopping and trade center.

Summary: Claims arising out of the Government’s alleged non-payment under a contract for the construction of a shopping mall.
Investments in the construction of a shopping and trade center. Settled Turkmenistan Turkey Tertiary: F - Construction 41 - Construction of buildings Boykin, J. H. - Claimant

Douglas, Z. - Respondent

Annacker, C. - President
10.00 mln USD Data not available Data not available Not applicable - settled or discontinued before decision on liability Order Taking Note of the Discontinuance of the Proceeding dated 12 December 2017 None None None None None None
6 2013 Erhas and others v. Turkmenistan Erhas and others v. Turkmenistan Turkey - Turkmenistan BIT (1992) UNCITRAL Data not available Investment:

Summary: Claims arising out of construction-related disputes for works undertaken in Turkmenistan.
Decided in favour of State Turkmenistan Turkey Tertiary: F - Construction 42 - Civil engineering Mourre, A. - President

Alexandrov, S. A. - Claimant

Douglas, Z. - Respondent
Data not available Data not available Data not available None - jurisdiction declined Award dated 8 June 2015 Separate Declaration by Stanimir A. Alexandrov None None None None None
7 2012 Muhammet Cap v. Turkmenistan Muhammet Çap & Sehil Inşaat Endustri ve Ticaret Ltd. Sti. v. Turkmenistan (ICSID Case No. ARB/12/6) Turkey - Turkmenistan BIT (1992) ICSID ICSID Investment: Rights under numerous contracts entered into with Turkmenistan concerning building projects.

Summary: Claims arising out of a series of governmental measures that allegedly led to the unlawful expropriation of claimants' construction projects in Turkmenistan, including defaulted payments and the termination of some of the contracts at issue before domestic courts.
Rights under numerous contracts entered into with Turkmenistan concerning building projects. Pending Turkmenistan Turkey Tertiary: F - Construction 41 - Construction of buildings Lew, J. D. M. - President

Hanotiau, B. - Claimant

Boisson de Chazournes, L. - Respondent
300.00 mln USD Data not available Indirect expropriation

Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

Full protection and security, or similar

Most-favoured nation treatment
Pending Decision on Respondent's Objection to Jurisdiction under Article VII(2) dated 13 February 2015 None None None None None None
8 2011 Garanti Koza v. Turkmenistan Garanti Koza LLP v. Turkmenistan (ICSID Case No. ARB/11/20) Turkmenistan - United Kingdom BIT (1995)

Turkey - Turkmenistan BIT (1992)
ICSID ICSID Investment: Rights under a contract signed between State Concern Turkmenautoyollari and Garanti Koza LLP for the design and construction of 28 highway bridges and overpasses on the Mary-Turkmenabad highway in Turkmenistan.

Summary: Claims arising out of disagreements between Garanti Koza and Turkmenistan over the performance of certain construction contract that led to the suspension of works and the subsequent Government's termination of the contract based on the investor's alleged failure to complete the work on time and the failure to resume works for a prolonged time of time.
Rights under a contract signed between State Concern Turkmenautoyollari and Garanti Koza LLP for the design and construction of 28 highway bridges and overpasses on the Mary-Turkmenabad highway in Turkmenistan. Decided in favour of investor Turkmenistan United Kingdom Tertiary: F - Construction 42 - Civil engineering Townsend, J. M. - President

Boisson de Chazournes, L. - Claimant

Lambrou, G. C. - Respondent
46.10 mln USD 2.50 mln USD Direct expropriation

Indirect expropriation

Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

Umbrella clause

Arbitrary, unreasonable and/or discriminatory measures

Full protection and security, or similar
Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

Umbrella clause
Decision on the Objection to Jurisdiction for Lack of Consent dated 3 July 2013

Award dated 19 December 2016
Dissenting Opinion by Laurence Boisson de Chazournes (Decision on the Objection to Jurisdiction for Lack of Consent) None None None None None
9 2011 MTS v. Turkmenistan (I) Mobile TeleSystems OJSC v. Turkmenistan (I) (ICSID Case No. ARB(AF)/11/4) Russian Federation - Turkmenistan BIT (2009) ICSID ICSID Investment: Rights under telecommunication licenses held by Mobile TeleSystems' wholly-owned U.S. subsidiary company.

Summary: Claims arising out of the Government's decision to suspend claimant's subsidiary license to provide telecommunications services in Turkmenistan and not to renew claimants' five-year contracts, which caused MTS to cease its operations in the telecommunications market in Turkmenistan after the expiration of its initial license.
Rights under telecommunication licenses held by Mobile TeleSystems' wholly-owned U.S. subsidiary company. Settled Turkmenistan Russian Federation Tertiary: J - Information and communication 61 - Telecommunications McLachlan, C. A. - President

Pryles, M. C. - Claimant

Buergenthal, T. - Respondent
800.00 mln USD Non-pecuniary relief Data not available Not applicable - settled or discontinued before decision on liability Order taking note of the discontinuance of the proceeding issued by the Tribunal dated 21 September 2012, pursuant to ICSID Arbitration (Additional Facility) Rule 49(1) None None None None None None
10 2010 Bozbey v. Turkmenistan Bozbey Insaat Sanayi ve Ticaret and Omer Faruk Bozbey v. Turkmenistan Turkey - Turkmenistan BIT (1992) UNCITRAL Data not available Investment: Construction and operation of an agro-industrial complex in Turkmenistan under a contract concluded with the Turkmen President’s Foundation.

Summary: Claims arising out of the initiation of criminal proceedings against the investor, the imposition of taxes and fines by Turkmen tax authorities upon his agro-industrial facility despite allegedly receiving a 21-year tax exemption under a special presidential decree, and the subsequent confiscation of claimant's property.
Construction and operation of an agro-industrial complex in Turkmenistan under a contract concluded with the Turkmen President’s Foundation. Discontinued Turkmenistan Turkey Primary: A - Agriculture, forestry and fishing 1 - Crop and animal production, hunting and related service activities Griffith, G. - President

Hertzfeld, J. M. - Unknown

Fordham, J. - Unknown
60.00 mln USD Data not available Indirect expropriation

Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

Arbitrary, unreasonable and/or discriminatory measures

Other
Not applicable - settled or discontinued before decision on liability Data not available Data not available None None None None None
11 2010 İçkale v. Turkmenistan İçkale İnşaat Limited Şirketi v. Turkmenistan (ICSID Case No. ARB/10/24) Turkey - Turkmenistan BIT (1992) ICSID ICSID Investment: Rights under thirteen contracts for the construction of schools, hotels, cinemas and other facilities.

Summary: Claims arising out of the Government's alleged interference with the execution of the claimant's work under construction contracts concluded with various State organs and State entities, including the blocking of bank accounts, the termination of contracts and the initiation of judicial proceedings.
Rights under thirteen contracts for the construction of schools, hotels, cinemas and other facilities. Decided in favour of State Turkmenistan Turkey Tertiary: F - Construction 42 - Civil engineering Heiskanen, V. - President

Lamm, C. B. - Claimant

Sands, P. - Respondent

Nariman, F. S. - Respondent (replaced)
566.70 mln USD Data not available Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

Full protection and security, or similar

Arbitrary, unreasonable and/or discriminatory measures

Umbrella clause

Indirect expropriation
None - all claims dismissed at the merits stage Award dated 8 March 2016

Decision on Claimant's Request for Supplementary Decision and Rectification of the Award dated 4 October 2016
Partially Dissenting Opinion of Philippe Sands

Partially Dissenting Opinion of Carolyn B. Lamm
None None None None None
12 2010 Kılıç v. Turkmenistan Kılıç İnşaat İthalat İhracat Sanayi ve Ticaret Anonim Şirketi v. Turkmenistan (ICSID Case No. ARB/10/1) Turkey - Turkmenistan BIT (1992) ICSID ICSID Investment: Rights under a number of building contracts in connection with projects in the Turkmen cities of Mary, Dashoguz and Ashgabat between Kiliç and various municipal governors, and other state officials.

Summary: Claims arising out of disagreements over the parties' respective performance under several construction contracts, including the alleged failure to pay certain amounts owed under various construction projects that the investor had designed and built.
Rights under a number of building contracts in connection with projects in the Turkmen cities of Mary, Dashoguz and Ashgabat between Kiliç and various municipal governors, and other state officials. Decided in favour of State Turkmenistan Turkey Tertiary: F - Construction 41 - Construction of buildings Rowley, J. W. - President

Gaillard, E. - President (replaced)

Park, W. W. - Claimant

Sands, P. - Respondent
300.00 mln USD Data not available Data not available None - jurisdiction declined Award dated 2 July 2013

Decision on Article VII.2 of the Turkey-Turkmenistan Bilateral Investment Treaty dated 7 May 2012
Separate Opinion of Professor William W. Park (Award) ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 14 July 2015 (ICSID annulment proceedings) None Rigo Sureda, A. - President

Böckstiegel, K.-H. - Member

Shin, H.-T. - Member
13 2009 Dogan v. Turkmenistan Adem Dogan v. Turkmenistan (ICSID Case No. ARB/09/9) Germany - Turkmenistan BIT (1997) ICSID ICSID Investment: Contractual interest in a proportion of the revenue stream of a poultry farm near Ashgebat; capital contributions of around USD 6 million to operate such poultry farm.

Summary: Claims arising out of the alleged expropriation and physical destruction of a poultry farm located near the capital of Ashgabat in which the claimant had invested.
Contractual interest in a proportion of the revenue stream of a poultry farm near Ashgebat; capital contributions of around USD 6 million to operate such poultry farm. Decided in favour of investor Turkmenistan Germany Primary: A - Agriculture, forestry and fishing 1 - Crop and animal production, hunting and related service activities Paulsson, J. - President

Wirth, M. - Claimant

Sands, P. - Respondent
45.00 mln USD Data not available Indirect expropriation

Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

Full protection and security, or similar

Transfer of funds
Indirect expropriation

Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims
Decision on Jurisdiction dated 29 February 2012

Award dated 12 August 2014
None ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 15 January 2016 (ICSID annulment proceedings) None Bernardini, P. - President

Khan, M. A. - Member

van Haersolte-Van Hof, J. J. - Member