Salah Al-Masad, Head of Fatwa and Legislation, stated that in 1976, the Arbitration Court was established under the supervision of the International Center for Settlement of Investment Disputes affiliated with the World Bank in Washington, under the rules of the United Nations Commission on International Trade Law (UNCITRAL), issued a ruling yesterday in the interest of Kuwait in response to the pleas submitted by the Kuwait Government on behalf of Kuwait in an arbitration dispute brought by the plaintiff, Maria Lazareva, against Kuwait, under Kuwait's Bilateral Investment Promotion and Protection Agreement with the Russian Federation.
According to Al-Masad, the plaintiff, Lazareva, filed a lawsuit against Kuwait under the Bilateral Investment Promotion and Protection Agreement on July 15, 2018. She claims the value of the investment she made in Kuwait and the lost profits, as well as compensation for Kuwait's abuse of criminal and legal procedures, according to her claims.
Moreover, he explained that the plaintiff claimed that Kuwait's criminal justice system did not meet international standards and that Kuwait was in violation of the contract's terms. In light of the plaintiff's allegations of direct investment in Kuwait, he requested compensation for moral damage and material losses.
A majority of the court decided by a majority not to consider the case for lack of jurisdiction as the arbitration tribunal won Kuwait's right and defense presented by its legal team, and Kuwait's right was won by the arbitration tribunal. He explained that the plaintiff was unable to meet the required investment criteria contained in the agreement regarding participation and control, which disqualified her from receiving the guarantees provided to foreign investors.
As a result of the court's decision, Kuwait will receive legal fees worth approximately $3.768 million, which the plaintiff Lazareva must pay Kuwait within 60 days. This success is added to the others that Kuwait has won before various arbitration centers, such as the Permanent Court of Arbitration in The Hague and the International Center for Settlement of Investment Disputes.
As a result of the Fatwa and Legislation team's efforts over the past four years, the ruling was issued, and Al-Massad praised their accomplishments./KT
