The Minister of Justice, Rati Bregadze declares, that the arbitration court completed the consideration of the lawsuit of Anaklia Development Consortium LLC and found that the Government of Georgia had legally terminated the investment agreement.
As he mentioned at today's briefing, the arbitration refused to pay the claimant one and a half billion dollars and ordered him to pay 650 thousand dollars in favor of the Government of Georgia.
"The Paris arbitration gave a decision to the Government of Georgia and Anaklia Development Consortium LLC, according to which the dispute ended with the victory of Georgia. The basis of the aforementioned dispute was the investment agreement signed on October 3, 2016 between the Government of Georgia and Anaklia Development Consortium LLC on the transfer of the construction of the Black Sea deep-sea port in Anaklia. In particular, due to multiple violations of investment obligations by the investor, the Government of Georgia was forced to terminate the investment agreement. The claimant disputed the legality of the termination of the investment agreement and sought approximately $1.5 billion in damages. The arbitration fully shared the legal arguments and evidence presented by the Ministry of Justice of Georgia and determined that despite the numerous postponements of the deadlines set by the Government of Georgia to seek financing for the construction, the investor could not fulfill the obligation entirely due to his own fault.
Also, the obligation to finance the project was fully borne by the investor, who, for his own reasons, could not find his own funds. The bearer of the project's commercial risk was also only the investor. The government neither directly nor indirectly prevented the investor from implementing the project. Taking into account all the above, the arbitration confirmed that the Government of Georgia terminated the investment agreement legally and the claimant's request for compensation of one and a half billion dollars was completely rejected. On the contrary, the claimant was obliged to pay 650 thousand dollars in favor of the Government of Georgia", said Rati Bregadze.
