Today it became known about the decision of the last session of the Hague Tribunal on the claim of Sergei Pugachev against the Russian Federation, which examined the powers of the Tribunal to consider the claim.
The lawsuit against Russia on the basis of the Agreement between the Government of the USSR and the Government of the French Republic on mutual encouragement and mutual protection of capital investments dated July 4, 1989 (hereinafter referred to as the Agreement) in connection with the expropriation by the Russian Federation of Mr Pugachev’s assets was filed by Mr. Pugachev in 2015.
Jurisdiction hearings were held in Paris in November 2019, and the decision became known only today.
Two out of three arbitrators considered that the Tribunal did not have jurisdiction to consider the claim.
The Tribunal in its decision recognized many of the arguments of Mr. Pugachev, but unfortunately, deviated from the well established principle in judicial practice according to which the Agreement protects the investor at the time of expropriation, and not at the time of the investment.
One of the arbitrators does not agree with the opinions of the other two and wrote his dissenting opinion, in which he pointed out that the interpretation of citizenship issues by the other two arbitrators is incompatible both with the text of the Agreement itself and with established case law.
This decision does not mean termination of the proceedings of Mr. Pugachev v. Russia.
The decision of the Tribunal will be appealed within the established procedural timelines.
Mr. Pugachev’s lawyers are confident that this decision will be set aside.
Press Service of Sergey Pugachev