Georgia Successfully Fends Off ICC Arbitration Claim Valued at $1.5 Billion Over Termination of Investment Agreement for Anaklia Port Development
In a significant ruling, an International Centre for Settlement of Investment Disputes (ICSID) tribunal has dismissed all claims brought by a minority Dutch investor, Bob Meijer, against the Government of Georgia in a dispute over the termination of the Anaklia Deep Sea Port investment agreement [1][3].
The decision, issued on July 30, 2025, comes after Meijer, who held an indirect 6.06% share in Anaklia Development Consortium (ADC), initiated an ICSID arbitration claim in 2020 [1][3]. Meijer was seeking nearly $70 million in compensation, claiming treaty violations and unlawful expropriation by the Georgian government.
The ICSID tribunal, chaired by Bernard Hanotiau, with Klaus Sachs and Charles Poncet as co-arbitrators, found that Meijer's shares in Anaklia City JSC, related to the planned free industrial zone near Anaklia Port, did not constitute a protected investment under the Georgia-Netherlands Bilateral Investment Treaty (BIT) and ICSID Convention [1][3].
The tribunal also determined that Georgia did not breach any treaty obligations related to Meijer's investment and was within its rights to terminate the investment agreement due to ADC's failure to secure financing for the Anaklia Port project [1][3].
Furthermore, the tribunal ruled that Georgia was not responsible for ADC’s contractual breaches or project failures, and awarded Georgia all its arbitration fees and costs totaling $6.5 million [1][3].
The background of the dispute dates back to 2016, when the Georgian government signed an investment agreement with ADC, involving Georgian TBC Holding and U.S.-based Conti International [4]. The project, however, faced numerous challenges, including a 2019 criminal investigation into alleged money laundering linked to TBC Holding founders [2][4]. The Georgian government claimed that this investigation justified terminating the project contract in 2020 [2][4].
It's important to note that the ICC arbitration tribunal, which previously heard the case brought by ADC against Georgia, dismissed their claims in their entirety in 2024 [2][4].
The service areas of the law firm involved in this complex case include Sovereigns, International Arbitration, Infrastructure, Transportation & Logistics, United Kingdom, France, Central & Eastern Europe, and Navigating Government Influence. The contacts at the law firm include Charles Nairac, John Willems, Noor Davies, Bachir Sayegh, Yutty Ramen, Ece Akıncıbay, Yasmine El Achkar, Élise Roussel, and Konstantine Kopaliani.
This ruling marks a significant victory for the Government of Georgia, affirming its lawful termination of the Anaklia Port project agreement and rejecting claims of treaty violations or unlawful expropriation [1][2][3][4].
- The ICSID tribunal, consisting of Bernard Hanotiau, Klaus Sachs, and Charles Poncet, served as counsel in the dispute between Bob Meijer and the Government of Georgia.
- Meijer, an associate of the Anaklia Development Consortium (ADC), initiated an arbitration claim in 2020 seeking compensation for treaty violations and unlawful expropriation.
- The tribunal found that Meijer's shares in Anaklia City JSC did not qualify as a protected investment under the Georgia-Netherlands Bilateral Investment Treaty (BIT) and ICSID Convention.
- White & Case, a corporate law firm, provided services and insights for the complex case, with Charles Nairac, John Willems, Noor Davies, and others acting as contacts.
- The ruling, issued on July 30, 2025, dismissed all claims brought by Meijer against the Georgian government and awarded Georgia its arbitration fees and costs totaling $6.5 million.
- The Anaklia Port project faced numerous challenges, including a 2019 criminal investigation into alleged money laundering linked to TBC Holding founders.
- The ICSID decision is a significant victory for the Government of Georgia, affirming its lawful termination of the Anaklia Port project agreement.
- The law firm's service areas for this case include Sovereigns, International Arbitration, Infrastructure, Transportation & Logistics, and Navigating Government Influence.
- In a previous arbitration, the ICC tribunal dismissed claims brought by ADC against the Georgian government in their entirety in 2024.
- The legal dispute dates back to 2016 when the Georgian government signed an investment agreement involving Georgian TBC Holding and U.S.-based Conti International.
