Summary

INTRODUCTION

1. This case concerns a dispute submitted to the International Centre for Settlement of Investment Disputes ("ICSID" or the "Centre") on the basis of the Agreement between the Government of the Republic of Latvia and the Government of Ukraine for the Promotion and Reciprocal Protection of Investments, signed on 24 July 1997 and entered into force on 30 December 1997 (the "Latvia-Ukraine BIT," or the "BIT"), and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, which entered into force on 14 October 1966 (the "ICSID Convention").

2. The Claimant is Mr. Eugene Kazmin ("Mr. Kazmin" or the "Claimant"), a natural person having the nationality of Ukraine. The Respondent is the Republic of Latvia ("Latvia" or the "Respondent"). The Claimant and the Respondent are collectively referred to as the "Parties."

3. This dispute relates to the Claimant's acquisition of a steel mill factory in Latvia in 2014. Mr. Kazmin alleges, amongst other things, that the government misrepresented the state of the plant during the tender process for the acquisition of the plant and failed to provide alleged promised support for the plant's operation once the transaction was complete. The plant ceased operating in 2016 and the Claimant's investment vehicle created for the acquisition went bankrupt.

4. In this Award, the Tribunal sets out the procedural history leading up to its decision (Section II). The background of the case is contained in Section III. The Tribunal then reviews the Parties' positions on the issues of discontinuance and allocation of costs and lays down its analyses on both issues (Section IV and V). Section VI contains the Tribunal's decisions.

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VI. DECISION

176. For the reasons set forth above, the Tribunal:

(a) Orders that these proceedings are hereby discontinued without prejudice;

(b) Decides that the Claimant shall pay the sums of (i) USD 250,000 less any amounts reimbursed by the ICSID Secretariat, and (ii) EUR 3,223,212.40 to the Respondent in respect of expenses incurred in connection with this arbitration; and

(c) Declines to award interest on such sums.