Deripaska calls court decision on his dispute with Montenegro erroneous

Deripaska calls court decision on his dispute with Montenegro erroneous

the court decision is based on the fact that Montenegro is allegedly not the legal successor of the Union of Serbia and Montenegro and therefore should not be liable for its obligations under the investment protection treaty with the Russian Federation.

On Thursday, the Montenegrin authorities announced victory over the businessman in arbitration, meaning a lawsuit by a Russian businessman demanding compensation for the misappropriation of his investments by Podgorica.

“We do not agree with the arbitration decision of the Permanent Arbitration Court of in The Hague, we consider it erroneous,” Oleg Deripaska's representative told RBC. 

According to the agency’s interlocutor, the court decision is based on the fact that Montenegro is allegedly not the legal successor of the Union of Serbia and Montenegro and therefore should not be liable for its obligations under the investment protection treaty with the Russian Federation.

The businessman’s lawyer noted that this decision could have consequences for Montenegro itself, including in relations with third countries. He said that “it is obvious that investors cannot trust a country that is deceiving them.” “We are analyzing the possibility of appealing against the arbitration decision and intend to continue protecting our investment,” the source added.

On Thursday, the Ministry of Economy of Montenegro reported that international arbitration refused to sustain Deripaska’s claim to recover compensation for the lost investments in the Podgorica Aluminum Combine (KAP). The ministry said that the arbitration recognized the agreement on the protection of foreign investment, concluded by the governments of Russia and Yugoslavia, not applicable in relation to Montenegro (declared independence in 2006).

Deripaska filed the lawsuit against the Montenegrin authorities, demanding compensation for the misappropriation of investments, in 2016.

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