As per a press release, Serbia has been ordered to pay 40 million $ compensation to Mytilineos (a Greek company) for several investments conducted with the country’s copper miner RTB Bor.
As a consequence of a trading deal signed in 1996, RTB Bor had to make several payments to Mytilineos. Nevertheless, due to financial issues that occurred in 2004, RTB Bor was enabled to pay the due amounts.
Furthermore, the Serbian government intervened by granting an enforcement immunity to RTB Bor.
The Arbitral Tribunal seated in Geneva ruled in favour of the Greek investor by stating that
Serbia had breached its obligations by taking a series of indirect expropriation measures against Mytilineos, without compensation.
The Tribunal found that these measures frustrated Mytilineos’s legitimate expectations to be afforded fair and equitable treatment by the Serbian State.