On August 3, 2018, “J. Borkovski and Rasia FZE v. Republic of Armenia” in arbitration case No. ARB/18/28, the arbitration tribunal issued a judgment on January 20, rejecting the claims of the Claimants and obliging them to compensate the Republic of Armenia for a total of about 2.8 million USD as compensation for legal fees and other expenses incurred.
This arbitration case related to the construction of the railway and expressway was initiated based on the Agreement “On Mutual Promotion and Protection of Investments between the Republic of Armenia and the United States of America,” as well as the concession agreements concluded in 2012 between the said company and the Government of the Republic of Armenia.
In the framework of the arbitration case, the plaintiffs claimed that the Republic of Armenia violated several obligations under the concession agreements and under the contract “Reciprocal Promotion and Protection of Investments between the Republic of Armenia and the United States of America.”
The plaintiffs demanded to confiscate about 225 million US dollars from Armenia, and in 2015 from March 18 until the arbitration award, the accrued interest was about 106 million US dollars.
