#TheAgreement #MinistryOfEconomy #ForeignInvestment
The arbitration tribunal declared itself incompetent to decide on an action that the company CEAC Holdings Limited filed against Montenegro, announced the Ministry of Economy.
The arbitration tribunal of the International Centre for Settlement of Investment Disputes (ICSID) in Paris, in part of the procedure devoted exclusively to the consideration of questions of jurisdiction, found that CEAC has no seat on the territory of Cyprus and therefore does not represent foreign investor in accordance with the terms of the applicable international agreement for the protection of foreign investment.
“This capacity would have to be necessary for CEAC in order to be authorized to initiate this type of arbitration proceedings against Montenegro. In addition, taking into account all the circumstances of the case and the fact that the CEAC initiated proceedings in which it could not even prove that it has the appropriate qualifications, the arbitral tribunal decided that the costs of the arbitration proceedings and legal representation in the amount of 900 thousand euros are entirely bared by the CEAC, and including the obligation of the CEAC to reimburse to Montenegro the expanses which it already bared in connection with this process,” the statement said.
They remind from the Ministry that the CEAC initiated the arbitration proceedings in March 2014 on the basis of a bilateral agreement on protection of foreign investments between Cyprus and Montenegro. CEAC has argued that Montenegro violated several obligations contained in the agreement and, though it did not announced the exact value of the dispute, the CEAC has announced in the professional community that they will demand compensation in the amount of over 600 million euros.
Source: Radio Television Montenegro