Montenegro wins arbitration against MNSS

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ICSID (International Centre for Settlement of International Disputes) in Paris decided in favor of Montenegro in connection with the arbitration procedure initiated by MNSS and Recupero, former owners of Zeljezara Niksic (Steelworks), seeking damages of over 100 million euros.

The Tribunal also decided that MNSS and Recupero are obliged to bear the costs of the arbitral tribunal and the ICSID Secretariat in full. The fact that ICSID was ordered to pay the costs of the proceedings may be interpreted as punishment for initiating arbitration against Montenegro.

According to Montenegrin Ministry of Economy, the decision of the Tribunal is final and represents remarkable success for Montenegro, because the other party was not awarded a cent of the requested damages of over 100 million euros.

The decision of the tribunal also says the Court declares itself unauthorized on certain accounts of MNSS’ lawsuit. This applies to claims filed under the Law on Foreign Investment, as well as requirements that are based only on the Privatization contract.

Tribunal found only one violation on the Montenegrin side, regarding “constant protection and security”, in particular in connection with the reaction of the police during an employees’ strike in 2010, after a call from the management. However, regardless of the violation, the arbitral tribunal has decided not to award any damages to the MNSS.

Source: Cafe Del Montenegro