Introduction & Background

On 4 May 2005, the Court of Appeal ( Judgment of the Svea Court of Appeal, Case No. T 6730-03, 4 May 2005 ) rejected an application by the Latvian Republic for the invalidity and setting aside of an arbitral award in favour of a private investor. The award declared that a contractual undertaking in a privatisation agreement (which had been the subject of the arbitral proceedings) ensured the private investor a certain level of profit from its investment and awarded damages on the basis of a breach by the Latvian Republic of such contractual ...