RIGA - The Arbitral Tribunal of the International Centre for Settlement of Investment Disputes (ICSID) in the case Eugene Kazmin v. Latvia issued its Award discontinuing the arbitration and ordering the Claimant, Ukrainian citizen Kazmin, to bear the costs of the proceeding, LETA learned from the State Chancellery.
As reported, Kazmin, a co-owner of Ukraine's KVV Group, which owns Latvia's insolvent steel company KVV Liepajas Metalurgs, has filed a lawsuit against Latvia with the International Centre for Settlement of Investment Disputes (ICSID) on February 3, 2017, based on the Latvian-Ukrainian agreement of July 24, 1997, on mutual protection of investments.
Following Kazmin’s failure to comply with the Tribunal’s order that he submit security for Latvia’s costs, Latvia requested the discontinuance of the arbitration and the reimbursement by the Claimant of the costs incurred Latvia in the arbitration.
Should Kazmin fail to reimburse Latvia’s costs, Latvia will consider taking further measures to enforce the Award.
As reported, the Liepaja Court declared KVV Liepajas Metalurgs insolvent on September 16, 2016.
The government earlier rejected the debt restructuring proposals by KVV Group, the Ukrainian owners of KVV Liepajas Metalurgs, saying that the proposals envisaged significant participation of the Latvian state in the metallurgical company without handing over control over the company, tax discounts and other measures that might be interpreted as unlawful state aid.