Russia Appoints D.Y. Chandrachud in Ukraine Arbitration

Russia has appointed former Chief Justice of India D.Y. Chandrachud as its arbitrator in an investment treaty arbitration filed by Ukraine’s state-owned Oschadbank. The dispute concerns assets and operations that Oschadbank says it lost in the Donetsk, Luhansk, Kherson, and Zaporizhzhia regions after Russia’s 2022 full-scale invasion of Ukraine.

Investment Treaty Arbitration

Investment treaty arbitration is a dispute-settlement process used under bilateral or multilateral investment agreements. It usually involves claims by an investor or a state-owned entity against a host state for alleged breaches of investment protection obligations.

The present case is being heard under the 1998 Agreement between the Government of the Russian Federation and the Cabinet of Ministers of Ukraine on the Encouragement and Mutual Protection of Investments. Such agreements are commonly called bilateral investment treaties and often provide for arbitration before a three-member tribunal.

Three-Member Arbitral Tribunal

The tribunal in this case has three members. Stavros Brekoulakis, a Greek arbitrator and professor at the National University of Singapore, was appointed by Oschadbank. Dyalá Jiménez of Costa Rica was jointly selected by both parties to serve as president of the tribunal.

Arbitral tribunals in investment disputes often include one arbitrator appointed by each side and a presiding arbitrator chosen by agreement or by an appointing authority. This structure is used in many international commercial and treaty arbitrations.

D.Y. Chandrachud and the Supreme Court of India

D.Y. Chandrachud retired from the Supreme Court of India on 10 November 2024. He served as a judge of the Supreme Court from May 2016 and later became the Chief Justice of India.

Reports stated that he had earlier declined separate requests from Moscow to act as arbitrator in other treaty disputes involving Wintershall Dea and Ukrenergo. Arbitrators in international disputes are expected to act independently and disclose possible conflicts of interest.

Important Facts for Exams

• Oschadbank is a state-owned bank of Ukraine.
• The 1998 Agreement between Russia and Ukraine is an investment protection treaty.
• Arbitral tribunals in treaty disputes commonly have three members.
• Crimea was annexed by Russia in 2014, and a previous Oschadbank case over lost assets led to a damages award of about US$1.1 billion.

Quinn Emanuel Urquhart & Sullivan and Asters are representing Oschadbank in the case. Pinna Goldberg is representing Russia in the arbitration.