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India Today
4 days ago
- Business
- India Today
DY Chandrachud takes key role in German energy firm vs Russia dispute
In a significant development in the ongoing arbitration between German energy company Wintershall and Russia, former Chief Justice of India DY Chandrachud has been designated as the appointing authority under the Energy Charter Treaty, a multilateral pact that works under a framework for cooperation in the energy Chandrachud, who demitted office as the Chief Justice in November 2024, is widely regarded for his contributions to constitutional law and international philosophy of law. His appointment signals the continued involvement of eminent jurists from diverse legal traditions in resolving high-stakes international investment development came following the resignation of Eduardo Siqueiros as the appointing authority on May 22, 2025. The designation of the appointing authority comes under the rules of the Permanent Court of Arbitration (PCA), which frequently provides administrative support in disputes between investors and states under the Energy Charter Treaty April this year, Wintershall moved the ECT tribunal seeking an anti-suit injunction directed against the Russian court proceedings, in response to which Moscow had asked for a short suspension of arbitration proceedings also offering that the court proceedings in Russia would be of the arbitrators in the case resigned after Russia didn't accommodate his request to terminate its injunction proceedings and ensure that the ECT tribunal and arbitration counsel were immune from prosecution in was followed by another procedural order in May where the truncated ECT tribunal agreed to temporarily suspend arbitration proceedings conditional on termination of Russian injunction proceedings. It was also stated that such proceedings amounted to a breach of the arbitration a May 24 order, the two arbitrators directed that the case resume, and Moscow was ordered to terminate the Russian injunction proceedings immediately and not file proceedings that would jeopardise the arbitration's per December 2023 Russian decrees, Wintershall Dea's stakes in the Yuzhno-Russkoye oil and gas condensate field and the Achimov gas projects were given back to newly-created Russian companies and offered for sale to Gazovyye company had initiated arbitration proceedings against Russia, which had repeatedly protested against such cases, saying they should have been considered only in Russian on one hand, the state has filed a challenge against the two remaining arbitrators, and on the other, Wintershall, in this case, has sought the move of the seat of arbitration from Dubai to per the arbitrator's latest order, the decision regarding seat relocation was deferred until either the reconstitution of the tribunal, or resolution of Russia's challenge against the two arbitrators, whichever is the ECT, the appointing authority plays an important role and has responsibilities, including facilitation of the constitution of the arbitral tribunal, particularly in case of disagreements between DY Chandrachud served as the Chief Justice of India from November 2022 to November 2024 and was succeeded by Justice Sanjiv Khanna, who also retired last Reel
Reuters
24-03-2025
- Business
- Reuters
EU Commission tells Spain not to pay up in long-running renewable subsidies case
MADRID, March 24 (Reuters) - The European Commission on Monday handed Spain a victory when it instructed the country not to pay any compensation in a case related to claims amounting to billions of euros on renewable energy subsidies cut more than a decade ago. Foreign investors, mostly investment funds, took legal action against Spain after the previous conservative government cut renewables subsidies in 2013 to reduce a power tariff deficit built up through years of artificially low prices. here. In 2018, French infrastructure-focused private equity firm Antin ( opens new tab won an arbitration procedure against Spain for losses allegedly suffered as a consequence of the policy change, and Spain was ordered to pay 101 million euros ($109.39 million) in compensation. The case was brought under the Energy Charter Treaty, an international treaty that allows energy companies to sue governments over policies that damage their investments. Later Antin, like other companies and investment funds that had invested in Spain in expectation of subsidies and also lodged lawsuits, sold the compensation rights to another fund, the Spanish Energy Ministry said without mentioning the fund. The EU Commission, after a long-running investigation, said on Monday that paying the arbitration would breach EU state aid rules, which prevent governments from giving unfair advantages to one firm over competitors. The ruling instructs Spain not to pay any compensation based on the arbitration award and to ensure that the award cannot be claimed in any other way. The finding is a boon for Spain, which has one of Europe's most ambitious green agendas. Spain's energy ministry welcomed the ruling and said it hopes it will help it defeat similar claims. International investors filed a total of 51 arbitrations over the cancellation of Spanish renewables subsidies worth 10.6 billion euros, according to the ministry. Eight are still pending. So far, Spain has been ordered to pay around 1.5 billion euros in various cases, the ministry added. Some funds have tried to have arbitration awards enforced with lawsuits outside EU in countries such as United States, Australia or Britain. Two years ago, a London court ruled that investors could seize Spanish assets to enforce a 120 million-euro judgment in a related case. ($1 = 0.9233 euros)
