The Arbitral Tribunal of the Stockholm Chamber of Commerce rejected on Wednesday, 3 August, the claim of Komaksavia Airport Invest Ltd against the Republic of Moldova, Justice Minister Sergiu Litvinenco announced. At the same time, according to the official, the Tribunal awarded Moldova some 216 thousand euros as compensation for expenses incurred in connection with the arbitration proceedings.

“By the request for the institution of arbitral proceedings of 15 May 2020, Komaksavia has requested, in essence, the Arbitral Tribunal to oblige Moldova to continue the execution of the concession contract for the assets under the management of the State Enterprise “Chisinau International Airport” and the land related to them. In the alternative, Komaksavia has requested the Trabunal that Moldova pay it compensation of EUR 883.7 million for the alleged expropriation of its investments in connection with the concession contract,” the Justice Minister said.

Thus, according to Minister Litvinenco, “the court ruled that Komaksavia did not make any investment in the assets of Chisinau International Airport”. Moreover, Komaksavia was obliged to pay Moldova’s costs, “saving it from paying arbitration fees in the amount of 422,500 thousand euros, leaving them to Komaksavia,” the minister said.

In August 2020, representatives of the Public Property Agency (PPA) issued a note stating that on August 3, 2020, the institution was informed about the issuance of the decision of the Arbitration Institute of the Stockholm Chamber of Commerce of August 2, 2020, which recommended the Moldovan state to refrain from further actions on the execution of the notice of termination of July 8, 2020 issued on the grounds of non-performance of contractual obligations by the “AVIA INVEST” LLC, regarding the non-constitution of the guarantee of good performance according to the provisions of the concession contract.

On 24 July 2020, “AVIA INVEST” Ltd. applied to the Arbitration Institute before the Stockholm Chamber of Commerce with a request for the application of insurance measures in the previously initiated case, in which it communicated its disagreement with the payment to the State account of the airport tax in the amount of 50% of the fare charged per passenger on departure, as well as with the notice of termination of the concession contract issued by the Public Property Agency for non-performance of contractual obligations by “AVIA INVEST” Ltd.

On 10 July, the Public Property Agency (APP) announced the termination of the concession contract for Chisinau International Airport on 8 July, on the grounds that the “Avia Invest” Ltd. had not fulfilled its contractual obligations. The company denied the information.

“Komaksavia Airport Invest” Ltd., which owns 95% of “Avia Invest”, the company that manages Chisinau Airport, has changed its shareholders in several instances over time, to end up in 2019 under the management of Russian businessman Andrei Goncearenko. However, documents sent at the time to several media outlets show that since 12 December 2019, the shareholder of “Komaksavia” would be the Bulgarian Marin Tenev, who has connections with businessman Vladimir Russu, former owner of the “White House” at Valea Morilor.

How Komaksavia Airport Invest Ltd. changed its shareholders.

Documents sent to several media outlets show that “Komaksavia”, founded in 2016, had Kyriakos Panagos, a lawyer at Panagos&Panagos law & consultancy firm, as a shareholder from 19.08.2016 to 22.08.2016.

Subsequently, the company was transferred, until April 2018, to the Russian businessman Modris Karklinsh who, in turn, transferred the company to the Bulgarian Marin Mihov Tenev. Rise Moldova previously wrote that Tenev has connections to Moldovan businessman Vladimir Russu. Vladimir Russu’s family is the one who built the “White House” on the coast of Valea Morilor park, attributed by some media outlets to Vlad Plahotniuc. Click here for details.

With the takeover of “Komaksavia” shares by Marin Tenev, the structure of Avia Invest’s Board of Directors was also changed, with fugitive MP Ilan Shor and his mother Ilona Shor becoming members.

Marin Tenev was a shareholder of “Komaksavia” until August 2019, when the company was taken over by NR Investments Ltd of Guernsey jurisdiction, beneficiary Nat Rothschild. On 23 December, NR Investments Ltd announced that it was relinquishing its 95% stake in Avia Invest. However, the documents sent to media outlets show that, as of 12 December, the shareholder of “Komaksavia” has become Marin Mihov Tenev again, not Andrei Gonce.

The company’s response

Komaksavia Airport Invest Ltd says that the decision of the Arbitral Tribunal of the Stockholm Chamber of Commerce rejecting the company’s claim against Moldova will be appealed to the Swedish High Court. At the same time, Komaksavia describes the announcement made by the Ministry of Justice as “a manipulation of public opinion” and the decision of the Arbitral Tribunal of the Arbitration Institute of the Stockholm Chamber of Commerce as “unfounded and politically motivated”.

“There are no “findings” and “decisions” on the grounds that the investor has not proved its case against Moldova. Simply because they have not yet come to be examined. In this or another arbitration, sooner or later, this evidence will be taken into account,” reads the statement issued by Komaksavia Airport Invest Ltd.

According to Komaksavia, the Stockholm arbitration did not concern the substance of the dispute, but only procedural matters concerning the admissibility of the request for examination under the Convention on Mutual Protection of Investments between Moldova and Cyprus.

At the same time, the company denies that the Tribunal ruled on the fact of lack of investment.

“Komaksavia Airport Invest Ltd draws attention to the fact that there are no such findings. The Arbitration concluded only that the investments made do not meet the specific criteria of the Convention between Moldova and Cyprus on the protection of investments and nothing more. And on this basis, the arbitration withdraws the claim and terminates the proceedings, and in no way announced a win for Moldova. Therefore, there can be no question of a termination of the concession contract,” says Komaksavia.