According to a report by the CNBC-e Business magazine, 17 cases have been brought against Turkey in major arbitration institutions the International Criminal Court (ICC), the United Nations Commission on International Trade Law (UNCITRAL) and the International Center for Settlement of Investment Disputes (ICSID) thus far, amounting to $51.5 billion in damages in total. Of these cases, 12 were resolved, with four of them in favor of Turkey. The country was found guilty in six cases, paying $250 million in compensation. The remaining two cases were completed with the two parties settling. Turkey paid more than $1.5 billion in these cases.
One of the arbitration claims that Turkey and the claimants reached a settlement on was the case filed jointly by Motorola and Nokia. Two companies demanded $4.8 billion due to a $2.5 billion debt owed by Turkish telecommunications company Telsim, which was purchased by Vodafone. With the settlement, Turkey paid a total of $1.2 billion to the two companies. The second settlement was reached with Aria after it filed claims for $2.5 billion. Turkey paid $300 million in compensation.
There are still six ongoing arbitration cases against Turkey being heard by these bodies. The amount of compensation claimed against Turkey in these cases stands at $34 billion.
Uzan-connected claims total $47 bln
Of the $51.5 billion in compensation claims brought against Turkey, claims worth $47 billion were filed by companies and parties connected to Uzan, the Turkish businessman whose family’s assets were seized in 2004 because of unpaid debts to the Turkish government. Four cases, the claims of which amount to $33.85 billion, are still under way.
Giving his opinion on arbitration claims against Turkey, lawyer Hal Eren warned the country about the rapidly rising number of cases in recent years. “This harms the country’s image for investors. Turkey is starting to be regarded as a country that does not keep its word or stick to agreements it has signed,” he said.
