Sovereignty Spotlight

White & Case Secures Second Total Victory for Georgia in Anaklia Port Dispute

In a significant development, an International Centre for Settlement of Investment Disputes (ICSID) tribunal issued an award on 30 July 2025, dismissing all claims brought by Dutch businessman Bob Meijer against Georgia. This follows the Government of Georgia's victory in defeating an ICC arbitration claim of US$ 1.5 billion regarding the termination of an investment agreement for the development of the Anaklia Port on 29 July 2024.

The tribunal, chaired by Bernard Hanotiau and including Klaus Sachs and Charles Poncet as co-arbitrators, ruled in favour of Georgia, marking a second total victory for the country in the Anaklia Port project dispute.

Meanwhile, in the realm of international law, the English Court issued a landmark decision on state immunity and enforcement on 17 April 2025. The case involved a legal dispute involving sovereign immunity and the enforcement of investment treaty awards, particularly in cases concerning the Republic of India and the Republic of Hungary (with Russia also involved in a similar context).

In the case involving India, the dispute with Devas/Antrix centres on allegations of corruption and fraud linked to the arbitration award. The Indian Supreme Court upheld liquidation of Devas for fraud and collusion, leading the Delhi High Court—the ICC arbitration seat—to set aside the award. Meanwhile, in the United States, Devas sought confirmation of the award under the Foreign Sovereign Immunities Act (FSIA) arbitration exception (§ 1605(a)(6)), which allows enforcement of arbitration awards against foreign states subject to certain conditions. This reflects the ongoing tension between domestic courts' findings (fraud and cancellation of awards) and international enforcement regimes under FSIA in U.S. courts.

Regarding Hungary, although no direct reference to Hungary is found in the current search results, the broader context of sovereign immunity disputes is evident in the case involving Russia, which similarly deals with the FSIA arbitration exception and the need for courts to decide jurisdictional facts whether sovereign immunity is waived by arbitration agreements. This case highlights the nuanced requirements courts impose to determine if arbitration exceptions to sovereign immunity apply when enforcement of investment treaty awards is pursued, especially regarding the existence and validity of arbitration agreements and the applicability of treaties like the New York Convention.

In summary, the current status reflects complexities in the enforcement of arbitration awards against foreign states, particularly in cases involving allegations of fraud and the application of FSIA. The developments underscore the importance of understanding the intricacies of international law and the role of firms like White & Case, which have service areas including Sovereigns and Navigating Government Influence.

The firm's partners Nicole Erb and Claire DeLelle, along with Counsel Celia McLaughlin and Danielle Tarin, were contributing editors for the eighth edition of the Lexology Panoramic: Sovereign Immunity 2025 guide, published on 2 July 2025 and providing timely updates on sovereign immunity.

Elsewhere, the European Commission led a concerted effort to coordinate and bolster European defence spending in recent months, with Commission President Ursula von der Leyen highlighting the estimated EUR 500 billion in defence investment EU states require over the next decade. The United States funded the first eligible bilateral loan to Ukraine under the Ukraine Loan Cooperation Mechanism on 10 January 2025.

Critical minerals have become highly sought-after commodities due to their essential role in clean energy and modern technology development. The current legal dispute involving sovereign immunity and the enforcement of investment treaty awards illustrates significant developments, particularly in cases concerning the Republic of India and the Republic of Hungary (with Russia also involved in a similar context).

In other news, Ukraine successfully concluded the restructuring of approximately US$20.5 billion of its international bonds and sovereign-guaranteed debt obligations on 3 September 2024. Ian Clark, who specializes in Capital Markets, Sovereigns, Financial Restructuring and Insolvency, and Financial Institutions, and Melissa Butler, who specializes in Capital Markets, Sovereigns, and Financial Institutions, were instrumental in these efforts.

Lastly, the Republic of Mozambique won a multibillion-dollar corruption case against Lebanese shipbuilding group, Privinvest, in the English High Court on 31 July 2024. The court's decision marks a significant victory for Mozambique in its fight against corruption.

[1] India: Supreme Court upholds liquidation of Devas for fraud and collusion

[2] Portuguese Supreme Court upholds recognition of ICSID arbitral award against Venezuela

[3] Devas seeks confirmation of arbitration award against India in U.S. court

[4] Russia: Sovereign Immunity and the FSIA Arbitration Exception

[5] U.S. Supreme Court Narrows Scope of FSIA Exception to Sovereign Immunity for Expropriation Claims

Sovereignty Spotlight