A U.S. arbitration tribunal has awarded $9.5 million to one of Ukraine's first foreign investors in his dispute against Ukraine.
The International Center for Settlement of Investment Disputes on March 28 ordered Ukraine to pay U.S. citizen Joseph Lemire’s Gala Radio the penalty “for denying fair and equitable treatment as required under the U.S.-Ukraine bilateral investment treaty in relation to tender applications,” the radio station’s press release said.
Ukraine has 60 days to pay the fine.
In its final award, the tribunal decided that Gala Radio had been hindered by Ukraine from developing into a full national network and a second AM network.
“These violations pertain to arbitrary practices, influence peddling and political interventions in the awarding of radio licenses in Ukraine by the [Ukrainian] National Council [for Television and Radio Broadcasting] since 1999 until very recently, including by way of direct intervention of the president of Ukraine in favor of certain candidates during tenders,” the Gala Radio press release said.
Lemire said the tribunal’s decision and subsequent award was “also in favor of the great state of Ukraine and its people as it will encourage reform and facilitate the country’s drive to democracy and liberty.”
Ukraine’s justice ministry would not provide comment until after it completes an annulment procedure in the case. Ukraine has 120 days to challenge the case on procedural grounds.
Lemire’s lawyer said Ukraine spent $4.5 million in legal fees and could pay at least $1 million in additional fees to arbitrators and for legal counsel when it pursues an annulment.
The tribunal award is enforceable through the Washington 1965 convention of which Ukraine is a signatory.
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