Kuwaiti-based logistics provider Agility has published a statement advising that foreign investors “think carefully about the perils of investing” in Iraq, after a judgment by an international arbitration panel denied its claims that Iraqi officials expropriated a sum of $380 million which it invested in an Iraqi telecom company.
The ruling, which was delivered by a panel put together by the International Centre for the Settlement of Investment Disputes (ICSID), involved Agility’s claims that Iraq seized its investment in Korek Telecom.
ICSID is a World Bank organization that serves as a platform for the resolution of investor-state dispute.
In what has been described as a strongly-worded statement, Agility said:
“The ICSID tribunal has sent the message – not only to the Republic of Iraq, but to the international community of civilized nations – that states can expropriate investments without providing compensation to their foreign investors.
The statement further read: “this was a regrettable decision, and Agility believes that foreign investors would be well-served to think carefully about the perils of investing in a country such as Iraq which continues to rank among the most corrupt countries, as determined by Transparency International.” The company also added that it is currently considering and taking steps towards an annulment of the decision, while also stating that it is gearing up to pursue claims of over $700 million directly against Korek and others under International Chamber of Commerce regulations.
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