posted May 31, 2011, 9:19 PM by IACL   [ updated Jul 14, 2011, 12:04 PM ]

In a decision on Jurisdiction and Liability rendered on January 14, 2010, the Tribunal dismissed Respondent’s objections to the jurisdiction of the Centre and the competence of the Tribunal and declared that Ukraine had breached the Fair and Equitable standard established in Article II.3 of the Ukraine-US BIT. In reaching this conclusion, the Tribunal determined that Respondent acted in a discriminatory and arbitrary manner by distorting fair competition between applicants of radio frequency licenses, allegedly favouring applicants with political connections and facilitating the secret awarding of licenses. The Tribunal decided to defer the question of reparation—including issues on quantum— for a later phase.