The World Bank's arbitration court ICSID dismissed a case against Romania filed by Alverley Investments Limited, an investment vehicle registered in Cyprus, and Germen Properties Ltd, on March 16, 2022, Economedia.ro reported. The two companies are investors in the Baneasa project, one of the biggest commercial real estate developments in Romania.

The court ordered the plaintiffs to pay court costs in the amount of USD 4.1 million.

Romania was represented in this case by the association between Hunton Andrews Kurth, SCP Toader and Associates and SCP Cobuz and Associates.

The plaintiffs' claims were formulated on the basis of the Agreement between the Government of Romania and the Government of the Republic of Cyprus regarding the promotion and mutual protection of investments.

Through the application registered at ICSID in 2018, the plaintiffs claimed that, as shareholders of some Romanian companies, they made investments in the Băneasa real estate project. The investment was the subject of a criminal investigation, which ended with a final court decision and jail sentences for several key people involved in the project.

The investors claimed that Romania violated the treaty through arbitral and discriminatory intervention actions, by the criminal investigation bodies and the courts, by depriving them of the opportunity to capitalize on their right to property over the investments and the right to a fair trial.

During the trial, a seizure was enforced on the assets of the companies and on their property title for the land in Băneasa. As a result, the two companies asked for damages of approximately USD 200 million.

andrei@romania-insider.com

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