Hungary

Hungary

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 2021 MacKenzie v. Hungary Christopher Jock Murdoch MacKenzie v. Hungary (ICSID Case No. ARB/21/66) Hungary - United Kingdom BIT (1987) ICSID ICSID Investment:

Summary:
Pending Hungary United Kingdom Tertiary: E - Water supply; sewerage, waste management and remediation activities 38 - Waste collection, treatment and disposal activities; materials recovery Hosking, J. - President

Schill, S. - Claimant

Khan, M. A. - Respondent
Data not available Data not available Data not available Pending Data not available Data not available None None None None None
2 2017 Al Ramahi v. Hungary Mazen Al Ramahi v. Hungary (ICSID Case No. ARB/17/45) Hungary - Jordan BIT (2007) ICSID ICSID Investment: Investments in a hotel chain in Budapest.

Summary:
Investments in a hotel chain in Budapest. Decided in favour of State Hungary Jordan Tertiary: I - Accommodation and food service activities 55 - Accommodation Binnie, I. - President

Gharavi, H. G. - Claimant

Stern, B. - Respondent
Data not available Data not available Data not available None - all claims dismissed at the merits stage Award dated 19 April 2021 None None None None None None
3 2017 Magyar Farming and others v. Hungary Inicia Zrt, Kintyre Kft and Magyar Farming Company Ltd v. Hungary (ICSID Case No. ARB/17/27) Hungary - United Kingdom BIT (1987) ICSID ICSID Investment: Leasehold rights to 760 hectares of State-owned agricultural land located in Hungary’s North-Western region of Ikrény.

Summary: Claims arising out of the alleged expropriation by the National Land Agency of the claimants’ leasehold rights to agricultural land, following new legislation and amendments in 2010-2013 which concerned the re-distribution of certain State-owned agricultural land through tenders. According to the claimants, a tender conducted by the National Land Agency resulted in the conclusion of lease contracts with third parties for the land leased by the claimants, which allegedly breached the claimants’ contractual and statutory pre-lease rights.
Leasehold rights to 760 hectares of State-owned agricultural land located in Hungary’s North-Western region of Ikrény. Decided in favour of investor Hungary United Kingdom Primary: A - Agriculture, forestry and fishing 1 - Crop and animal production, hunting and related service activities Kaufmann-Kohler, G. - President

Alexandrov, S. A. - Claimant

Hanefeld, I. - Respondent
17.90 mln EUR (19.70 mln USD) 7.10 mln EUR (7.90 mln USD) Direct expropriation Direct expropriation Award dated 13 November 2019 None ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 16 November 2021 (ICSID annulment proceedings) None Bastid Burdeau, G. - President

Conthe, M. - Member

Nolan, M. D. - Member
4 2016 ENGIE and others v. Hungary ENGIE International Holdings BV, ENGIE SA and GDF International SAS v. Hungary (ICSID Case No. ARB/16/14) The Energy Charter Treaty (1994) ICSID ICSID Investment: Shareholding in gas companies.

Summary:
Shareholding in gas companies. Settled Hungary France

Netherlands
Tertiary: D - Electricity, gas, steam and air conditioning supply 35 - Electricity, gas, steam and air conditioning supply Williams, D. A. R. - Claimant

Bernardini, P. - Respondent

Sachs, K. - President
642.00 mln EUR (725.60 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 pursuant to ICSID Arbitration Rule 43(1) dated 23 February 2018 None None None None None None
5 2014 Sodexo Pass v. Hungary Sodexo Pass International SAS v. Hungary (ICSID Case No. ARB/14/20) France - Hungary BIT (1986) ICSID ICSID Investment: Company engaged in the sale of social vouchers in Hungary.

Summary: Claims arising out of the enactment of legislation granting the Government a monopoly over the prepaid corporate vouchers industry, allegedly introducing a State-run voucher system with conditions more favourable than those granted to private operators.
Company engaged in the sale of social vouchers in Hungary. Decided in favour of investor Hungary France Tertiary: N - Administrative and support service activities 82 - Office administrative, office support and other business support activities Park, W. W. - President

Carlevaris, A. - Claimant

Thomas, J. C. - Respondent
Data not available 73.00 mln EUR (83.30 mln USD) Indirect expropriation Indirect expropriation Award dated 28 January 2019 Separate and Dissenting Opinion of J. Christopher Thomas ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 7 May 2021 (ICSID annulment proceedings) None Jana Linetzky, A. - President

Onwuamaegbu, U. - Member

van Haersolte-Van Hof, J. J. - Member
6 2013 Edenred v. Hungary Edenred S.A. v. Hungary (ICSID Case No. ARB/13/21) France - Hungary BIT (1986) ICSID ICSID Investment: Company engaged in the sale of social vouchers in Hungary.

Summary: Claims arising out of the enactment of legislation granting the Government a monopoly over the prepaid corporate vouchers industry, allegedly introducing a State-run voucher system with conditions more favourable than those granted to private operators.
Company engaged in the sale of social vouchers in Hungary. Decided in favour of investor Hungary France Tertiary: N - Administrative and support service activities 82 - Office administrative, office support and other business support activities Fernández-Armesto, J. - President

Orrego Vicuña, F. - Claimant (replaced)

Tschanz, P.-Y. - Claimant

von Wobeser, C. - Respondent
Data not available 23.00 mln EUR (24.30 mln USD) Indirect expropriation Indirect expropriation Decision on the Respondent’s preliminary objections pursuant to ICSID Arbitration Rule 41(5) dated 6 June 2014

Decision concerning the Respondent’s request to address the objections to jurisdiction as a preliminary question dated 16 October 2014

Award dated 13 December 2016

Decision on Revision dated 7 February 2019
None ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 9 March 2020 (ICSID annulment proceedings) None Verhoosel, G. - Member

Ufot, D. U. - Member

Low, L. A. - President

Tercier, P. - President (replaced)

Yusuf, A. A. - President (replaced)
7 2013 UP and C.D Holding v. Hungary UP and C.D Holding Internationale v. Hungary (ICSID Case No. ARB/13/35) France - Hungary BIT (1986) ICSID ICSID Investment: Company engaged in the sale of social vouchers in Hungary.

Summary: Claims arising out of the enactment of legislation granting the Government a monopoly over the prepaid corporate vouchers industry, allegedly introducing a State-run voucher system with conditions more favorable than those granted to private operators.
Company engaged in the sale of social vouchers in Hungary. Decided in favour of investor Hungary France Tertiary: N - Administrative and support service activities 82 - Office administrative, office support and other business support activities Böckstiegel, K.-H. - President

Fortier, L. Y. - Claimant

Bethlehem, D. - Respondent
27.40 mln EUR (31.50 mln USD) 23.20 mln EUR (26.70 mln USD) Indirect expropriation

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

Arbitrary, unreasonable and/or discriminatory measures
Indirect expropriation Decision on Preliminary Issues of Jurisdiction dated 3 March 2016

Award dated 9 October 2018
None ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 11 August 2021 (ICSID annulment proceedings) None Ramírez Hernández, R. - President

Cooper-Rousseau, B. - Member

Wallgren-Lindholm, C. - Member
8 2012 Accession Mezzanine v. Hungary Accession Mezzanine Capital L.P. and Danubius Kereskedöház Vagyonkezelö Zrt. v. Hungary (ICSID Case No. ARB/12/3) Hungary - United Kingdom BIT (1987) ICSID ICSID Investment: Shareholding in two Hungarian companies (Sláger Rádió Műsorszolgáltató Zrt. and Danubius Rádió Műsorszolgáltató Zrt.) that won a competitive tender for licenses for FM national radio-broadcasting frequencies in Hungary.

Summary: Claims arising out of the alleged expropriation of claimants' investments in nationwide FM-frequency radio-broadcasting licenses in Hungary, through the Government's decision to award the radio-broadcasting frequencies formerly held by claimants to a third party.
Shareholding in two Hungarian companies (Sláger Rádió Műsorszolgáltató Zrt. and Danubius Rádió Műsorszolgáltató Zrt.) that won a competitive tender for licenses for FM national radio-broadcasting frequencies in Hungary. Decided in favour of State Hungary United Kingdom Tertiary: J - Information and communication 60 - Programming and broadcasting activities Rovine, A. W. - President

Lalonde, M. - Claimant

Douglas, Z. - Respondent

McRae, D. M. - Respondent (replaced)
Data not available Data not available Indirect expropriation

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

Umbrella clause

National treatment

Customary rules of international law

Arbitrary, unreasonable and/or discriminatory measures
None - jurisdiction declined Decision on Respondent’s Objection under Arbitration Rule 41(5) dated 16 January 2013

Decision on Respondent's Notice of Jurisdictional Objections and Request for Bifurcation dated 8 August 2013

Award dated 17 April 2015
None None None None None None
9 2012 Dan Cake v. Hungary Dan Cake (Portugal) S.A. v. Hungary (ICSID Case No. ARB/12/9) Hungary - Portugal BIT (1992) ICSID ICSID Investment: Interests in a local bakery company.

Summary: Claims arising out of the bankruptcy of a Hungarian baking company in which the claimant had invested and the alleged mishandling by Hungary's authorities of an insolvency process.
Interests in a local bakery company. Decided in favour of investor Hungary Portugal Secondary: C - Manufacturing 10 - Manufacture of food products Mayer, P. - President

Paulsson, J. - Claimant (replaced)

Schill, S. - Claimant

Landau, T. - Respondent
47.90 mln EUR (54.50 mln USD) 5.20 mln EUR (6.20 mln USD) 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

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

Arbitrary, unreasonable and/or discriminatory measures
Decision on Jurisdiction and Liability dated 24 August 2015

Award dated 21 November 2017

Decision on Revision dated 25 February 2020
None ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision on Annulment dated 16 July 2021 (ICSID annulment proceedings) None Bull, C. - President

Crivellaro, A. - Member

Pinto, M. - Member
10 2012 Emmis v. Hungary Emmis International Holding, B.V., Emmis Radio Operating, B.V., MEM Magyar Electronic Media Kereskedelmi és Szolgáltató Kft. v. Hungary (ICSID Case No. ARB/12/2) Hungary - Netherlands BIT (1987)

Hungary - Switzerland BIT (1988)
ICSID ICSID Investment: Shareholding in a Hungarian company that won a competitive tender for one of the two licenses for FM national radio-broadcasting frequencies in Hungary.

Summary: Claims arising out of the alleged expropriation of claimants' investments in nationwide FM-frequency radio-broadcasting licenses in Hungary, through the Government's decision to award the radio-broadcasting frequencies formerly held by claimants to a third party.
Shareholding in a Hungarian company that won a competitive tender for one of the two licenses for FM national radio-broadcasting frequencies in Hungary. Decided in favour of State Hungary Netherlands

Switzerland
Tertiary: J - Information and communication 60 - Programming and broadcasting activities McLachlan, C. A. - President

Lalonde, M. - Claimant

Thomas, J. C. - Respondent
Data not available Data not available Indirect expropriation

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

Umbrella clause

National treatment

Customary rules of international law

Arbitrary, unreasonable and/or discriminatory measures
None - jurisdiction declined Decision on Respondent’s Objection Under ICSID Arbitration Rule 41(5) dated 11 March 2013

Decision on Respondent's Application for Bifurcation dated 13 June 2013

Award dated 16 April 2014
None None None None None None
11 2011 Vigotop v. Hungary Vigotop Limited v. Republic of Hungary (ICSID Case No. ARB/11/22) Cyprus - Hungary BIT (1989) ICSID ICSID Investment: Shareholding in two Hungarian subsidiaries; indirect rights under a concession contract for a resort development project to which claimant's local subsidiary was a party.

Summary: Claims arising out of a series of alleged unlawful measures by the Government which culminated in the termination of certain concession contract for a resort development project that would include a casino, three luxury hotels and various attractions, known as the King's City Project.
Shareholding in two Hungarian subsidiaries; indirect rights under a concession contract for a resort development project to which claimant's local subsidiary was a party. Decided in favour of State Hungary Cyprus Tertiary: L - Real estate activities 68 - Real estate activities Sachs, K. - President

Bishop, D. - Claimant

Heiskanen, V. - Respondent
312.60 mln EUR (425.60 mln USD) Data not available Indirect expropriation None - all claims dismissed at the merits stage Award dated 1 October 2014 None None None None None None
12 2009 EDF v. Hungary Electricite de France (EDF) International S.A. v. Republic of Hungary The Energy Charter Treaty (1994) UNCITRAL PCA Investment: Majority shareholding in Budapesti Eromu ZRt, an electricity company that operated several plants under long-term power purchase agreements with Hungary’s state electricity company.

Summary: Claims arising out of the Government's termination of certain long-term power purchase agreements concluded between EDF’s local subsidiary and the State-owned energy company MVM, following a ruling by the European Commission declaring that the agreements were illegal under EU State aid rules and should be terminated.
Majority shareholding in Budapesti Eromu ZRt, an electricity company that operated several plants under long-term power purchase agreements with Hungary’s state electricity company. Decided in favour of investor Hungary France Tertiary: D - Electricity, gas, steam and air conditioning supply 35 - Electricity, gas, steam and air conditioning supply Böckstiegel, K.-H. - President

Dupuy, P.-M. - Claimant

van den Berg, A. J. - Respondent
100.00 mln USD 107.00 mln EUR (132.60 mln USD) Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims

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

Other
Award dated 3 December 2014 None Judicial review by national courts Award/decision upheld (Judicial review by national courts) Swiss Federal Supreme Court Decision on Set-Aside of Award dated 6 October 2015 (Judicial review by national courts) None None
13 2007 AES v. Hungary (II) AES Summit Generation Limited and AES-Tisza Erömü Kft. v. Republic of Hungary (II) (ICSID Case No. ARB/07/22) The Energy Charter Treaty (1994) ICSID ICSID Investment: Majority shareholding in a Hungarian electricity generation company that held a power purchase agreement with Hungary; contributions of over EUR 98 million to retrofit certain power station.

Summary: Claims arising out of the Government's reintroduction in 2006 and 2007 of administrative pricing pursuant to two Price Decrees (after administrative prices had been abolished as of 1 January 2004), and the alleged resulting loss of revenue to the investor.
Majority shareholding in a Hungarian electricity generation company that held a power purchase agreement with Hungary; contributions of over EUR 98 million to retrofit certain power station. Decided in favour of State Hungary United Kingdom Tertiary: D - Electricity, gas, steam and air conditioning supply 35 - Electricity, gas, steam and air conditioning supply von Wobeser, C. - President

Rowley, J. W. - Claimant

Stern, B. - Respondent
230.00 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

National treatment

Most-favoured nation treatment

Arbitrary, unreasonable and/or discriminatory measures
None - all claims dismissed at the merits stage Award dated 23 September 2010 None ICSID annulment proceedings Award/decision upheld (ICSID annulment proceedings) Decision of the ad hoc Committee on the Application for Annulment dated 29 June 2012 (ICSID annulment proceedings) None Hanotiau, B. - President

Knieper, R. - Member

Yusuf, A. A. - Member
14 2007 Electrabel v. Hungary Electrabel S.A. v. The Republic of Hungary (ICSID Case No. ARB/07/19) The Energy Charter Treaty (1994) ICSID ICSID Investment: Rights under a power purchase agreement concluded between Electrabel’s subsidiary Dunamenti Eromu (the owner-operator of a power plant near Budapest) and the State-owned electricity wholesaler MVM.

Summary: Claims arising out of Hungary's termination of a power purchase agreement concluded with the investor, allegedly as part of the State's program for liberalizing its electricity market to comply with EU laws on State aid.
Rights under a power purchase agreement concluded between Electrabel’s subsidiary Dunamenti Eromu (the owner-operator of a power plant near Budapest) and the State-owned electricity wholesaler MVM. Decided in favour of State Hungary Belgium Tertiary: D - Electricity, gas, steam and air conditioning supply 35 - Electricity, gas, steam and air conditioning supply Veeder, V. V. - President

Kaufmann-Kohler, G. - Claimant

Stern, B. - Respondent
147000.00 mln HUF (679.70 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

National treatment

Most-favoured nation treatment

Arbitrary, unreasonable and/or discriminatory measures
None - all claims dismissed at the merits stage Decision on Jurisdiction, Applicable Law and Liability dated 30 November 2012

Award dated 25 November 2015
None None None None None None
15 2004 Telenor v. Hungary Telenor Mobile Communications AS v. Republic of Hungary (ICSID Case No. ARB/04/15) Hungary - Norway BIT (1991) ICSID ICSID Investment: Direct and indirect holdings in local company (wholly- owned subsidiary) that had a concession agreement for telecommunications services.

Summary: Claims arising out of a series of measures adopted by the respondent with respect to telecommunications service providers that allegedly affected the operation of a concession agreement for the provision of public mobile radiotelephone services concluded between claimant's wholly owned subsidiary and the Hungarian Minister of Transport, Communications and Water Management.
Direct and indirect holdings in local company (wholly- owned subsidiary) that had a concession agreement for telecommunications services. Decided in favour of State Hungary Norway Tertiary: J - Information and communication 61 - Telecommunications Goode, R. - President

Allard, N. W. - Claimant

Marriott, A. L. - Respondent
152.00 mln USD Data not available Indirect expropriation

Fair and equitable treatment/Minimum standard of treatment, including denial of justice claims
None - jurisdiction declined Award dated 13 September 2006 None None None None None None
16 2003 ADC v. Hungary ADC Affiliate Limited and ADC & ADMC Management Limited v. Republic of Hungary (ICSID Case No. ARB/03/16) Cyprus - Hungary BIT (1989) ICSID ICSID Investment: Rights under a contract entered into with a Hungarian State agency, ATAA, to renovate, construct and operate two terminals of Budapest-Ferihegy International Airport in Hungary.

Summary: Claims arising out of the issuance of a decree by the Minister of Transport of Hungary resulting in the takeover of all the activities related to the operation of claimants' investment, following the completion of the construction and renovation of the airport terminals at issue.
Rights under a contract entered into with a Hungarian State agency, ATAA, to renovate, construct and operate two terminals of Budapest-Ferihegy International Airport in Hungary. Decided in favour of investor Hungary Cyprus Tertiary: F - Construction

Tertiary: H - Transportation and storage

Tertiary: H - Transportation and storage
41 - Construction of buildings

51 - Air transport

52 - Warehousing and support activities for transportation
Kaplan, N. - President

Philip, A. - President (replaced)

Brower, C. N. - Claimant

van den Berg, A. J. - Respondent
99.70 mln USD 76.00 mln USD Direct expropriation

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
Direct expropriation Award dated 2 October 2006 None None None None None None
17 2001 AES v. Hungary (I) AES Summit Generation Limited v. Republic of Hungary (I) (ICSID Case No. ARB/01/4) The Energy Charter Treaty (1994)

Hungary - United Kingdom BIT (1987)
ICSID ICSID Investment: Power purchase and sale agreement.

Summary: Claims arising out of Hungary's alleged failure to comply with a sale agreement of certain State-owned power facilities.
Power purchase and sale agreement. Settled Hungary United Kingdom Tertiary: D - Electricity, gas, steam and air conditioning supply 35 - Electricity, gas, steam and air conditioning supply Philip, A. - President

Weil, P. - Claimant

Orrego Vicuña, F. - Respondent
Data not available Data not available 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 3 January 2002, pursuant to Arbitration Rule 43(1) None None None None None None
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 2020 OTP Bank v. Croatia OTP Bank Plc v. Republic of Croatia (ICSID Case No. ARB/20/43) Croatia - Hungary BIT (1996) ICSID ICSID Investment: Investments in the banking industry in Croatia through a local subsidiary.

Summary: Claims arising out of the law that prescribed a change in the currency of loans, issued in Croatia, from Swiss Franc to the Euro.
Investments in the banking industry in Croatia through a local subsidiary. Settled Croatia Hungary Tertiary: K - Financial and insurance activities 64 - Financial service activities, except insurance and pension funding Data not available 224.00 mln HRK (34.50 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 16 July 2021 None None None None None None
2 2013 MOL v. Croatia MOL Hungarian Oil and Gas Company Plc v. Republic of Croatia (ICSID Case No. ARB/13/32) The Energy Charter Treaty (1994) ICSID ICSID Investment: Controlling shareholding (49 per cent) in Industrija nafte, d.d. (INA), a Croatian oil and gas company 44.8 per cent owned by the State.

Summary: Claims arising out of the alleged failure by the Government to improve the gas trading business of the company in which MOL had invested (which was loss making), as well as alleged delays and irregularities in granting licenses and the criminal prosecution of claimant's chief executive.
Controlling shareholding (49 per cent) in Industrija nafte, d.d. (INA), a Croatian oil and gas company 44.8 per cent owned by the State. Decided in favour of investor Croatia Hungary Primary: B - Mining and quarrying

Tertiary: D - Electricity, gas, steam and air conditioning supply
6 - Extraction of crude petroleum and natural gas

35 - Electricity, gas, steam and air conditioning supply
Berman, F. - President

Park, W. W. - Claimant

Stern, B. - Respondent
1100.00 mln USD 183.90 mln USD Umbrella clause

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

Arbitrary, unreasonable and/or discriminatory measures

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

Umbrella clause
Decision on Respondent's Application under ICSID Arbitration Rule 41(5) dated 2 December 2014

Award dated 5 July 2022
None None None None None None
3 2007 Civis-Ing v. Serbia Civis-Ing Kft v. Republic of Serbia Hungary - Serbia BIT (2001) UNCITRAL Data not available Investment:

Summary:
Data not available Serbia Hungary Data not available Data not available Name not available - President

Name not available - Claimant

Name not available - Respondent
10.00 mln EUR (11.30 mln USD) Data not available Data not available Data not available Data not available Data not available None None None None None