Gardabani Holdings BV v Georgia (Nicosia District Court General Application No. 5/22, 14 July 2025)

Procedural record

1. 19 April 2021Sweden

   19 April 2021Sweden

   Partial Award on Liability

   Arbitration Institute of the Stockholm Chamber of Commerce

   Decision summary

   The tribunal determined Georgia's liability for breach of the share sale agreement.

   Participants

   Gardabani Holdings BV

   Georgia

   Ministry of Finance and Sustainable Development of Georgia

   State Service Bureau Ltd

   Arbitration Institute of the Stockholm Chamber of Commerce

   3 months and 11 days later · 102 days

2. 30 July 2021Sweden

   30 July 2021Sweden

   First Partial Award on Damages

   Arbitration Institute of the Stockholm Chamber of Commerce

   Decision summary

   The tribunal resolved specified disputed issues concerning damages without determining the amount of damages or making a damages award.

   Participants

   Gardabani Holdings BV

   Georgia

   Ministry of Finance and Sustainable Development of Georgia

   State Service Bureau Ltd

   Arbitration Institute of the Stockholm Chamber of Commerce

   3 months and 24 days later · 116 days

3. 23 November 2021Sweden

   23 November 2021Sweden

   Second Partial Award on Damages

   Arbitration Institute of the Stockholm Chamber of Commerce

   Decision summary

   The tribunal ordered Georgia, its Ministry of Finance and Sustainable Development, and State Service Bureau Ltd to pay Gardabani Holdings BV USD 18,663,000 within 30 days of receiving the award, and to indemnify it for Georgian tax liabilities arising from the awarded sums.

   Participants

   Gardabani Holdings BV

   Georgia

   Ministry of Finance and Sustainable Development of Georgia

   State Service Bureau Ltd

   Arbitration Institute of the Stockholm Chamber of Commerce

   3 years, 7 months and 21 days later · 1329 days

4. 14 July 2025Cyprus

   14 July 2025Cyprus

   Decision of the Nicosia District Court in the case General Application No. 5/22 dated 14 July 2025

   Nicosia District Court

   Case no.

   General Application No. 5/22

   Decision summary

   The court recognized and ordered enforcement in Cyprus of the SCC Second Partial Award on Damages dated 23 November 2021 in arbitration V 2018/039. It held that Georgia's agreement to arbitrate the commercial share-sale dispute prevented Georgia from relying on state immunity at the recognition-and-enforcement stage, and awarded the application costs to Gardabani Holdings BV against Georgia subject to assessment and court approval.

   Participants

   Gardabani Holdings BV

   Representative

   Eleftherios Oikonomou (For: Gardabani Holdings BV)

   Representative

   Zivanari (For: Gardabani Holdings BV)

   Georgia

   Representative

   A. Georgiadis (For: Georgia)

   Representative

   Ch. Christoforou (For: Georgia)

   Nicosia District Court

   Judge

   N. Talaridou-Kontopoulou

   Authorities cited

   13

   • Cyprus Convention on Recognition and Enforcement of Foreign Arbitral Awards (Ratification) Law 84/1979 (Cyprus Law 84/1979)
     statute
   • New York Convention on Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention)
     statute
   • Cyprus International Commercial Arbitration Law 101/1987 (Cyprus Law 101/1987)
     statute
   • United Nations Convention on Jurisdictional Immunities of States and Their Property (2004 UN Convention on Jurisdictional Immunities of States and Their Property)
     statute
   • European Convention on State Immunity (1972 European Convention on State Immunity)
     statute
   • Alison Fashion v Republic of Cyprus (28/2020)
     case-law
   • Svenska Petroleum Exploration v Government of the Republic of Lithuania ([2006] EWCA Civ 1529)
     case-law
   • Alcom Ltd v Republic of Colombia ([1984] AC 580)
     case-law
   • Alcom Ltd v Federal Government of Nigeria
     case-law
   • Techsnabexport v Globe NuclearServs (656 F Supp 2d 550)
     case-law
   • Intersputnik International Organization of Space Communications v Alrena Investments (Civil Appeal 298/2013, 4 April 2017, ECLI:CY:AD:2017:A122)
     case-law
   • Cyprus Foreign Court Judgments (Recognition, Registration and Enforcement under Convention) Law (Cyprus Law 121(I)/2000)
     statute
   • Guide to the Interpretation of the 1958 New York Convention: A Handbook for Judges (May 2012 edition)
     academic