$878m Arbitration Case against Iraqi Govt Dismissed

By John Lee.

The World Bank's International Center for Settlement of Investment Disputes (ICSID) has reportedly dismissed a German investor's claim arising out of the Iraqi Government's alleged takeover of a cement factory in Kirkuk.

In the case (ICSID Case No. ARB/20/21), AHG Industry GmbH & Co. KG was said to be claiming $878 million from the Republic of Iraq for the alleged expropriation of its cement production business.

The tribunal, headed by Dr Yas Banifatemi, closed the case on 30th September, reportedly due to "manifest lack of legal merit", a clause which applies to objections to jurisdiction as well as objections on the merits.

AHG was represented by New York-based lawyers Bracewell, while Iraq was represented by two firms, Baker Botts (UK) and Kadhims Ltd, a new firm established in London in December 2021.

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(Sources: ICSID, UNCTAD, Lexis Nexis)

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