The press service of the President of Russia
The international arbitration court in Stockholm rejected the claim of Russian businessman Oleg Deripaska to the government of Montenegro for the recovery of compensation in the amount of 600 million euros for the lost investment in the aluminum plant KAP, reports TASS.
About your decision, the Tribunal announced on 15 October, said the Ministry of economy of the Balkan States.
According to the statements of the Ministry of economy of Montenegro, the court recognized the agreement on investment protection between the governments of Russia and the Federal Republic of Yugoslavia (United state of Serbia and Montenegro until 2003), is not applicable to Montenegro. In this regard, the court refused further decision on court queries Deripaska. The court also ordered Deripaska to compensate for Montenegro legal expenses.
«We do not agree with the decision taken by the arbitral decision of the Permanent court of arbitration in the Hague, think it is a mistake,» said RBC representative of Oleg Deripaska. According to him, the court’s decision is based on the fact that Montenegro is alleged is not the legal successor of the state Union of Serbia and Montenegro and shall not meet its obligations under the Treaty on protection of investments with the Russian Federation.
«We are investigating the opportunity to appeal the arbitration award and we intend to continue protection of investments», — said the representative of the Russian billionaire.
Deripaska filed a lawsuit against Montenegro in 2016, demanding compensation for the misappropriation of investment. In its lawsuit, Deripaska referred to signed in 1995 an agreement between the governments of Russia and Yugoslavia. Although the amount of compensation has not been well established, however, it was reported that the damage is estimated at 600 million euros, the statement of the Ministry of economy of Montenegro.
The dispute concerns the aluminium plant KAP and bauxite mine that Deripaska had acquired in 2005. During the global financial crisis of 2008-2009, the company was on the verge of bankruptcy because of falling aluminium prices and the high cost of production in the factory.
In 2013, the government of Montenegro initiated the KAP bankruptcy, the debts of the plant at that time was estimated at 350 million euros. Later the company was sold for 29 million euros.