Reputation As A Continuous Winner Of Investment Arbitrations Tarnished

The State of Ukraine has ended up as the losing party in investment arbitration for the second time in less than 6 months. In Joseph C. Lemire v. Ukraine (ICSID Case No. ARB/06/18), an investment arbitration under the Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings (Institution Rules) of the International Centre for Settlement of Investment Disputes (the "ICSID"), an arbitral tribunal found for a US investor (the "Claimant"). The final award was issued by the tribunal on 28 March 2011 (the "Award"), ordering Ukraine (the "Respondent") to pay USD 8,7 million in compensation for the breach of the United States-Ukraine Bilateral Investment Treaty (the "BIT"), and USD 750,000 to compensate the reasonably incurred legal fees of the Claimant.