Ukraine has won an important victory in international investment arbitration - the arbitration in Stockholm rejected the lawsuit regarding the "green tariff", Ukraine won such a case for the first time, the Ministry of Justice reported on Wednesday, writes UNN.
The Arbitration Tribunal of the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) fully rejected the foreign investor's claim regarding changes (restructuring) of the "green tariff" and sided with the state of Ukraine.
This refers to the case based on the claim of Modus Energy International B.V. (now - Green Genius International B.V.), filed in 2021 under the Energy Charter Treaty.
The investor demanded at least 22.7 million euros in compensation, claiming that the 2020 "green tariff" reform violated his rights.
The Ministry of Justice reported the key points regarding this case:
- this is Ukraine's first victory in investment arbitration in disputes related to the restructuring of the "green tariff";
- the tribunal recognized that Ukraine acted within its sovereign powers and pursued a legitimate public purpose;
- the stated financial claims were unsubstantiated and speculative;
- the investor had no protected expectations regarding the immutability of regulation or guaranteed profitability.
Separately, the arbitration positively assessed the state's approach - open dialogue with investors and a compromise reform model.
Ukraine's interests in the case were represented by the Ministry of Justice of Ukraine together with international legal advisors - Allen Overy Shearman Sterling US LLP and Gibson Dunn & Crutcher LLP, as well as Ukrainian legal advisor - Serhiy Hryshko's Law Office "Queritius Ukraine".
"This decision is an important signal for international practice: Ukraine is able to consistently and professionally defend its interests in complex investment disputes," the Ministry of Justice emphasized.