Turkmenistan won a $ 500 million lawsuit against a Turkish construction company

Turkmenistan won a lawsuit against the Turkish construction company Sehil, the information portal Turkmenportal reports, citing representatives of the US law firm Squire Patton Boggs.

A Turkish company filed a lawsuit in 2012. The dispute concerned the construction of 32 facilities on the territory of Turkmenistan, including a water treatment plant, a waste processing plant, a metallurgical plant, and a number of other social facilities.

According to the plaintiffs, Turkmenistan did not fully fulfill its obligations, delaying the construction process , as well as doing work not specified in the contracts, for which compensation was due, which the Turkmen side did not pay. In addition, the list of claims included unfair fines for delays in work, unjustified inspections by tax services.

In turn, the Turkmen side argued that the termination of a number of contracts had every reason, since Sehil did not fulfill part of the contractual obligations, bearing in mind the unfinished construction of a number of objects and numerous identified defects.

The claim filed by Sehil was considered at the International Center for the Settlement of Investment Disputes. Following the results of the court proceedings, members of the ICSID tribunal ruled to reject all claims of the plaintiff, representatives of the law firm “Squire Patton Boggs”, which represented the interests of Turkmenistan at the trial, reported.

By the decision of the tribunal, the Turkmen courts and tax services acted strictly within the framework of the country’s legislation and in accordance with the norms of international law.

Claims about threats to the plaintiff company, which allegedly came from the Turkmen side, were also recognized by the court as inconsistent with reality.

The plaintiff will have to reimburse the expenses for 9 years of litigation.

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