Kuwaiti-based logistics provider Agility has said foreign investors "should think carefully about the perils of investing" in Iraq, following a ruling by an international arbitration panel to deny its claims that Iraqi officials expropriated $380 million invested by Agility in an Iraqi telecom company.
The ruling, by a panel constituted by the International Centre for the Settlement of Investment Disputes (ICSID), involved Agility's claims that Iraq expropriated its investment in Korek Telecom.
ICSID is a World Bank organization that serves as a forum for investor-state dispute resolution.
In a strongly-worded statement, Agility said:
"The ICSID tribunal has sent the message - not only to the Republic of Iraq, but to the international community of civilized nations - that states can expropriate investments without providing compensation to their foreign investors.
"This was a regrettable decision, and Agility believes that foreign investors would be well-served to think carefully about the perils of investing in a country such as Iraq which continues to rank among the most corrupt countries, as determined by Transparency International."
The company said it is currently considering its options to apply for annulment of the decision, and added that it is moving to pursue claims of more than $700 million directly against Korek and others under International Chamber of Commerce rules.
Full statement from Agility here.
(Source: Agility)
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