London Court of International Arbitration issues second arbitral award in favor of SOCAR
- 28 January 2021
Second arbitral award was issued on 26th January 2021 under London Maritime Arbitration Association terms in favor of SOCAR Group, SOCAR told APA-Economics.
London Court of International Arbitration awarded US$ 63,000,000 in the second proceeding between SOCAR and Palmali. The sum consists of amounts payable by Palmali and Mubariz Mansimov, as well as interest accrued and legal expenses and disbursements. Palmali's multi-million dollar counterclaim was entirely dismissed.
SOCAR and Palmali used to have commercial relations previously, although the two companies have never founded a joint venture. In 2018, due to Palmali’s violation of commitments, the companies, belonging to SOCAR Group initiated three arbitration proceedings against the companies of Palmali Group and Mubariz Mansimov. In the first one London Court of International Arbitration proceedings awarded SOCAR Overseas US$ 49,500,000. Thus, two out of three arbitration proceedings already resulted in US$ 112,500,000 in total being awarded to SOCAR. Third dispute between SOCAR and Palmali is also the subject of arbitration proceedings. Those proceedings have been concluded now, and the Tribunal's Award is expected.