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Sorainen Represents Windoor in ICSID Arbitration Against Kazakhstan

Sorainen Represents Windoor in ICSID Arbitration Against Kazakhstan

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Sorainen and Jones Day Washington D.C. are representing Windoor in arbitration proceedings at the International Center for the Settlement of Investment Disputes in Washington, D.C., involving its claim against the Republic of Kazakhstan for EUR 23 million.

Windoor, an Estonian manufacturer of glass and aluminum facades, is claiming that Kazakhstan breached the treaty between the Estonian and Kazakh governments on the promotion and reciprocal protection of investments.

The alleged breaches relate to administrative and law enforcement actions taken by the Kazakh authorities in obstructing Windoor’s enforcement of an arbitral award issued in 2015 by the Stockholm Chamber of Commerce. That award ordered a Kazakh state enterprise to pay Windoor around EUR 23 million in a dispute concerning Windoor’s investment in the construction of an international business and conference centre in Astana.

According to Sorainen, for over two years after obtaining the award, Windoor pursued various legal and procedural avenues in Kazakhstan to enforce the arbitration award. In February and October 2016, Windoor notified the Kazakh government of its intention to seek international arbitration if Kazakhstan failed to fulfill its Treaty obligations.  

On September 14, 2018, Windoor filed a request for arbitration to the International Center for the Settlement of Investment Disputes (ICSID), which is part of the World Bank Group headquartered in Washington D.C.

The Windoor case is the first involving a claim by Estonian company against a foreign state in the ICSID, which has been operating since 1966.

The Sorainen team consists of Partner Reimo Hammerberg and Senior Associate Maria Pihlak.