JURISDICTIONAL CHALLENGE AND INVESTMENT LAW COMPLIANCE: KREDERI LTD. V. UKRAINE (ICSID CASE NO. ARB/14/17)
AUTHOR – CHAITALI MUNGRE, STUDENT AT NATIONAL LAW UNIVERSITY, ODISHA
Best Citation – CHAITALI MUNGRE, JURISDICTIONAL CHALLENGE AND INVESTMENT LAW COMPLIANCE: KREDERI LTD. V. UKRAINE (ICSID CASE NO. ARB/14/17), ILE JOURNAL OF ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW (ILE JADRLR), 1 (1) of 2023, Pg. 7-14, APIS – 3920 – 0046 | ISBN – 978-81-964391-3-2.
ABSTRACT
The Ukraine-UK Bilateral Investment Treaty (BIT) is the subject of the arbitration case Krederi Ltd. v. Ukraine (ICSID Case No. ARB/14/17)[1] between Krederi Ltd., an investor, and Ukraine. The International Centre for Settlement of Investment Disputes (ICSID) jurisdictional question is at the center of this dispute. It centers on the legitimacy of Krederi’s real estate investment in Ukraine and the ensuing legal measures taken by Ukraine, including court decisions that ruled Krederi’s ownership of the land plots to be unlawful. Ukraine contends that Krederi’s investment violated Ukrainian law, particularly regarding the necessity of registration and borrowing. The argument is that Krederi Ltd. broke the law by acting in a certain way, which caused the court to rule against their ownership rights.
The case raises important legal questions about the ICSID’s authority as well as the interpretation and application of the Ukraine-UK Bilateral Investment Treaty. Both parties make their cases regarding the legitimacy of Krederi’s investment and how Ukrainian law affects the dispute. The verdict, in this case, was that the Tribunal ordered that the Respondent shall reimburse the Claimant the amount of USD 313,711.67 corresponding to its share of the costs of the proceedings advanced by the Claimant. This will significantly impact the rights and obligations of foreign investors in Ukraine and the implementation of investment treaties. In the context of the Ukraine-UK Bilateral Investment Treaty, it will offer guidance on how to interpret pertinent sections and provide insights into the legal system controlling investment disputes.
Keywords: Krederi Ltd., Ukraine, ICSID, investment arbitration, jurisdictional challenge, Ukraine-UK Bilateral Investment Treaty, investment law, legal compliance.
[1] Krederi Limited v Ukraine, Award, ICSID Case No ARB/14/17, IIC 1636 (2018)