The International Centre for Settlement of Investment Disputes (ICSID) Tribunal has ruled in favour of one of Estonia’s largest glass and aluminium facade manufacturers, Windoor, in its dispute against the Republic of Kazakhstan.
Kazakhstan violated the obligation of fair and equitable treatment
The Tribunal determined that Kazakhstan’s refusal to enforce the SCC Awards, the invalidation of the Letter of Guaranty issued to Windoor, and the manner in which it all occurred constituted a denial of justice and violated the Fair and Equitable Treatment obligation under the bilateral investment treaty between Estonia and Kazakhstan. As a result, Windoor’s investment in Kazakhstan completely lost its value.
Kazakhstan’s corruption allegations were unequivocally rejected, and no wrongdoing by Windoor was found.
“Relief that through this great struggle, justice still prevails,” described Windoor’s Chief Executive Officer Mailis Lintlom, her first emotions after learning of the court decision. “Probably no one believed it, not even the press, I think,” reports Äripäev.
A long journey paid off
The Tribunal awarded Windoor the damages it sought, primarily consisting of the amounts awarded by the SCC in approximately 23 million EUR, with late payment interest added, as well as legal fees and costs for proceedings in Kazakhstan and in ICSID.
Sorainen represented Windoor in both the SCC and ICSID arbitrations, in collaboration with international legal advisors.
Our arbitration expert, partner Maria Pihlak, commented: “Windoor is the first Estonian investor to undertake the journey to ICSID arbitration against a foreign state. We are delighted that more than a decade of Kazakhstan’s resistance to fulfilling its obligations has culminated in a devastating judgment by the international tribunal. Windoor’s victory confirms that international treaties protect against state arbitrariness and that an investor’s persistent efforts to realise their rights can prevail.”
Our client team
Our team was led by partner Maria Pihlak, supported by partner Paul Künnap, counsel Mari Agarmaa-Jentson, senior associates Raul Kartsep, Polina Tšernjak and Liisa-Maria Puur, and associates Katariina Kuum and Jaanika Alevi.
