Georgia lost two arbitration disputes with Inter Rao

Georgia lost two arbitration disputes with Inter Rao. As BPN writes, on the one hand, this concerns a 76 million dollar arbitration dispute, which has been going on since 2017 at the International Center for Settlement of Investment Disputes (ICSID) with the World Bank, and on the other hand, Georgia lost the dispute at the Stockholm Arbitration Tribunal. The latter is a parallel investment dispute with Inter Rao, within the framework of which the country was ordered to pay 112 million dollars.

According to the available information, Georgia will have to pay the amount of one of the disputes, not both, because the addition does not happen in the case of arbitration.

In December 2021, the Stockholm arbitration ordered Georgia to pay compensation in favor of the Russian company. According to the Ministry of Justice, then "Inter Rao" demanded 200 million, but after presenting the arguments, the amount was reduced to 80 million.

2 years ago, according to the information of the Georgian government, the dispute continued, however, as can be seen from the latest decision, the Stockholm arbitration increased the amount to be paid.

We remind you that the dispute with Inter Rao started in 2017. The company owns 2 Georgian hydroelectric plants, which, in turn, owns 75% of the energy company Telasi. The plaintiffs demanded compensation for the damage caused by the devaluation of the GEL from the Georgian authorities. The case concerned the issue of tariffs. The government of Georgia believed that the tariffs were correctly defined.