Armenia faces a new ICSID claim, brought by UAE and USA investors in railway venture

A new claim against the Republic of Armenia has been registered by the International Centre for Settlement of Investment Disputes (“ICSID”).

The case is brought under the double aegis of the Armenia-US Bilateral Investment Treaty (for US investor Joseph Borkowski) and on a contractual basis (for UAE-based Rasia FZE).

Publicly available information indicates that the Dubai-based Rasia Group, chaired by Mr. Borkowski, was granted two concessions in 2012 relating to a network of railways and highways in Southern Armenia that would connect up to bordering Iran (see here).

According to Rasia, “(t)he concession terms provide specific periods for completing feasibility studies, engineering designs, project financing and construction and are followed by a 30-year operating period, renewable by Rasia for an additional 20 years.”

The project appears to have foundered however (see here and here).

The investors are represented by Shearman & Sterling in London.

We will update this article if we learn more about this case.