ICSID Decisions given in favor of Turkmenistan is enforced by Cindemir Law Office in Turkey.
Author: Mr. Gökhan Cindemir , Phd Candidate , Senior Partner Lawyer cindemir@cindemir.av.tr
Turkish Companies were sentenced to compensation at the International Arbitral Tribunal by Republic of Turkmenistan.
Turkmenistan’s Ministry of Justice resorted to the Turkish judicial system through Cindemir Law Office in order for Republic of Turkmenistan to collect the compensations that are contingent with the World Bank’s arbitration (ICSID), against the Turkish Companies. In the statement of the law office’s representative Lawyer Gökhan Cindemir said;
“Turkish Companies were sentenced to compensation at the International Arbitral Tribunal by Republic of Turkmenistan.”
Turkish Companies were sentenced to pay compensation to Republic of Turkmenistan by International Arbitral Tribunal. Headquarters located in Washington, “The International Centre for Settlement of Investment Disputes Arbitration Court” shortly known as “ICSID”, rejected all claims against Republic of Turkmenistan by Turkish companies and sentenced Kılıç İnşaat A.Ş. to pay a compensation of 1,078.215,00 American Dollars.
Within the frame of ten different contracts pursuant to Mutual Promotion and Protection of Investments Treaty, which is signed between Republic of Turkey and Republic of Turkmenistan in 2009, Kılıç İnşaat resorted to referring to arbitration of the World Bank against Republic of Turkmenistan with the claims of harmful activities towards the construction of the facilities, delaying the payments in this context, imposing unfair penalties, commencing judicial process unannounced and without the defendant party’s attendance. After claiming for 275.124.575 American Dollars, the lawsuit was rejected by three arbitrators by a large majority and Turkish company was sentenced to pay compensation.
In another trial, plaintiff İçKale Ltd. Şti.’s claims against Republic of Turkmenistan were rejected and aforementioned company was sentenced to pay a compensation of 1,747,521 American Dollars.
“Arbitration Board Rejected Appeal”
Appeal request by Kılıç İnşaat A.Ş. against the aforementioned sentence submitted in January 13 2014 was rejected by the arbitration board in July 14 2015 and confirmed the compensation of Republic of Turkmenistan.
“Republic of Turkmenistan began the initiatives to collect their dues”
It was found out that through their lawyers in Turkey, Republic of Turkmenistan initiated the necessary legal actions against the companies that were sentenced by the arbitration in order to collect their dues.
Arbitral rulings by the ICSID in the relevant countries in accordance with “Contract of Settling the Investment Disputes between Founding Countries of the International Centre for Settlement of Investment Disputes (ICSID) and Citizens of Other Countries”, of which Turkey is known to be a party of and is signed on 24.6.1987, are considered as a local court ruling and can be directly subjected to enforcement.
“Other International Arbitration Boards Also Decided that Turkish Companies acted under Unjust Manners”
UNCITRAL, Affiliated to United Nations, other arbitral rulings in accordance with the arbitration rules put into effect by “United Nations Council of International Trade Law” also sentenced Turkish companies to remit compensation to Republic of Turkmenistan. Within this scope, 11 Turkish claimants of the pending case (Erhas and others) and businessman Faruk Bozbey were sentenced to compensation as well.