Georgia is currently facing eight international arbitration cases with potential claims totaling over $4.8 billion, according to the Fiscal Risk Analysis accompanying the government’s 2027 budget draft. The Finance Ministry identifies adverse arbitration rulings as one of the risks to the state budget. Of seven completed cases, four ended in a win for the state, while three resulted in awards in favor of the claimants.
“According to information provided by the Ministry of Justice, the potential maximum amount in dispute in eight ongoing international arbitration cases is approximately $4.8 billion,” the document says. It notes that the amounts actually paid in previously lost cases were insignificant, but says this history does not provide grounds to assume that future costs in this area will remain equally limited.
The largest case lost by the Georgian government concerns ENKA and the termination of the investment agreement for the Namakhvani HPP project. Georgia lost the case in December 2024 and subsequently appealed the ruling in France. While appellate proceedings continued in 2025–2026, ENKA in September 2026 applied to a US District Court for the District of Columbia to recognize and enforce the award, and the court granted the request. Georgia was ordered to pay $443.26 million, €356,190 and £40,362, with SOFR +4% interest accruing daily until full payment.
Another arbitration case lost by Georgia involved Russia’s Inter RAO. In December 2025, the parties agreed on a payment schedule, with compensation totaling $139 million at the time. The first payment was made on December 31, 2025, and the second on July 10, 2026. Payments are scheduled to be completed by July 10, 2028.
