ECONOMOU & CO LLC | View firm profile
We are pleased to announce a significant victory in our international arbitration and enforcement practice. In a judgment issued on 14 July 2025, the District Court of Nicosia recognized and declared enforceable a foreign arbitral award of approximately USD 19 million against a sovereign state.
This case is of particular legal significance, marking the first time a Cypriot court has substantively examined the doctrine of state immunity in the arbitration context. The Court held that a state acting in a commercial capacity and having agreed to arbitration cannot later rely on immunity to avoid recognition of the award.
In its analysis, the Court drew on the guidance of the Supreme Court in Intersputnik International Organization of Space Communications v. Alrena Investments (Civil Appeal 298/2013), emphasizing that:
“The philosophy underlying the international conventions governing international commercial arbitration is the provision of a swift mechanism for the administration of justice and resolution of disputes at an international level.”
This judgment marks a critical milestone in the development of cross-border enforcement in Cyprus. It sends a clear message of judicial support for award creditors and reflects the Cypriot judiciary’s firm commitment to maintaining Cyprus as an arbitration-friendly jurisdiction – one that respects ADR, embraces legal certainty, and consistently upholds its international obligations.