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Home > Legal & Regulatory docs.

Evrobalt LLC v The Republic of Moldova - SCC Emergency Arbitration EA 2016-082 - Arbitrator Georgios Petrochilos - Award on Emergency Measures - 30 May 2016

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Country
  • Moldova, Republic of
  • Russian Federation
Year

2016

Summary


Case report (free download)

Case Report by Ilektra Athanasiou-Ioannou and Diego Luis Alonso Massa

Summary

In the Award rendered on May 30, 2016, the Emergency Arbitrator Mr. Petrochilos appointed under the Arbitration Rules of the Stockholm Chamber of Commerce (2010) declined to grant Claimant the interim relief sought, in particular to suspend the decrees issued by the Moldovan government institutions that threatened to impair Claimant's investment in the country. The Emergency Arbitrator was satisfied that there was prima facie jurisdictional basis to hear the dispute, even though the cooling-off period stipulated in the Russia-Moldova investment treaty had not expired; according to the Emergency Arbitrator the cooling-off period constituted a mere procedural requirement, which did not affect the tribunal's jurisdiction in a case where negotiations would be manifestly futile. Finally, the Emergency Arbitrator rejected the investor's request for interim measures, because it failed to satisfy the non-compensable harm requirement; more precisely, it was held that any harm the investor might suffer due to the breach of Respondent's treaty obligations could be compensated by a final award for damages that would rendered by the tribunal that will hear the main proceedings, once it has been constituted. Likewise, there was no indication that the investor's harm would lead to financial ruin or that monetary compensation could not fully compensate any damage suffered.

Main Issues

SCC Emergency Arbitrator - Jurisdiction; Prima facie qualification: "investment", "investor"; Cooling-off period; Applicability of 2010 SCC Rules - Emergency Interim Measures; Requirements - Standard of Non-Compensable/Irreparable Harm.

Evrobalt LLC v. The Republic of Moldova, SCC Emergency Arbitration (EA 2016/082) - Award on Emergency Measures, 30 May 2016

Case report provided by International Arbitration Case Law (IACL)

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