LATVIA LOSES CASE IN INTERNATIONAL ARBITRATION COURT

Published: 17 November 2000 y., Friday
Despite a cabinet decision not to publicize the matter, Finance Minister Gundars Berzins has revealed that the International Court of Arbitration in Stockholm ruled last month that Latvia should pay $2.5 million to the Swedish company SwemBalt AB. The court ruled that Latvia has violated the Latvian-Swedish intergovernmental agreement on the promotion and mutual protection of investments. The company had brought the ship "Feederchif" to Riga in 1993 with the purpose of establishing a trade center on board the vessel, but the planned projects were not implemented. In 1996, when the owners had failed to show up and the condition of the vessel had deteriorated to such a degree that there was a danger of its sinking, the Riga Port Administration sold the ship by auction and the vessel was cut into scrap metal. Prime Minister Andris Berzins ordered a probe to establish who was guilty in the matter and why Latvia failed to defend its interests properly. The court ruling cannot be appealed, but Latvian lawyers have demanded explanations.
Šaltinis: LETA
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