As it was stated in the announcement, CEAC believes that there’s a big number of serious flaws and shortcomings in the decision.
“CEAC’s position was supported by professor Park, one of the three arbitres of the tribunal. ICSID states in the decision that it doesn’t think to have the right to hear CEAC’s case because CEAC doesn’t have headquarters in Cyprus and is because of that not protected by the agreement between Cyprus and Montenegro. If this decision remains, it will have huge negative consequences for Cyprus and several thousand companies with foreign ownership that are registered and operating in this country. This will endanger the status of these companies as investors, depriving them of important protection provided by many bilateral investment agreements that Cyprus has. This couldn’t have been the expectation of Cyprus when it entered these agreements or the companies who are based there”, it was said from the company.
As they added, CEAC intends to ask for cancellation of this decision in accordance with the article 52 of the ICSID Convention and hopes that ICSID will cancel this decision in its totality.
“It is important to mention that this decision only deals with jurisdiction of the court in this process and doesn’t say anything about validity of CEAC’s claims”, it was concluded from CEAC.
