Final Arbitral Award

253 Pages·2012·24.24 MB·English

Silaga 4
In the matter of an UNCITRAL Arbitration
Arb,itral' Award
r:-SV-E-A-HO-l,~.::a.1
A of 30 Mardi 2012
o r. T 52¥~'f- /2/
n ......... ,. .................... " .... ..
issued and notified by the
2012 -07- 0 3
Ink
Arbitral Tribunal
5"
Aktbil. ................................ ..
hailing its seat in Stockholm/Sweden
K
r\
A
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consisting of:
•
• Dr Marc Blessing, attorney·at-Iaw, Of Counsel, ~r & Karrer AG, Brandsdlenkestrasse !lO, CH-8027' Zurich,
S\'Jltzerl'llnd, Tel. +41 (O) 58 261 5000, Fax: [phone], Mobile: oj. 41 (0) 79402 5510,
S-mall: [email protected]
ChaIrman, appointed on 5 August 2008 by the Stockholm Chamber of Commerce
• Advokat Pet' RuneJand, of SJ 6erwin U.P, 10 Queen Street Place, London EC4R 1Bf, UnIted KIngdom,
Tel. [phone], Fax: [phone], Mobile: [phone], E-mail: 'P.eC.~uneland(ijh;:jbBfwln.com
Co·ArbLtrator, appolnred by ClaImant
• Professor Audrey VurJevltch Bushev, CommerdalLaw Department, Law S(:hool of St. PettUsburgUniVersfty,
22 Line of Vasllle.VsKv Ostrov 7, St. Petersburg, 199026 RUSSia, Tel [phone],E-maU:
bUsheV2~1.POmail-IUiCo-Arbitrator, appointed by the Re$pondents 1, 2i 4 and 5
~ [Former Arbitrators named by the Responc;/ents: Until 26 February 2010, the date of the Chalfenge OeclJ;lon Qf the
Stocrcttolm Arbitration institute, Professor Val~rv A. MuSln, of Musln & Partners, 23 RooFitgena Str., Offil;e 2,
197061 St. Petersburg, Russia, served as the Arbitrator jOintly appointed by Respondents.
Thereupon, Professor Alexev A. Kostin, Vice President of the International Commercial ArbiVatlon COurt l'lt the
R.l/sslan Chamber of Commerce and Indu~trv, Moscow ~.!Wmt, since September 2010), was named as
5ub{;tltutlng ArbItrator who, upon a further challenge add~s,ed by Clalmant to tile Ar'bltrntlon Institute of the
Stookholm Chamber of Cornmerce, on 16 April 2010 voluntarily retired as ArbItrator without acknowledging the
validity of the grounds of the challenge against him.)
in re
sax
Dr Cart A. )
As Succe.ssor~ln~lnt~ to Strategic Partners (Holding,s) 1Jmlted and Pu(J<OIJO (Stra~i£ Partners) Ltd. )
'iJ'2.?7 Bod~ga Place, Delray Beach, Aorlda 334i14, USA ) Claimant
Tel. [phone], Fax: +l 978 3'83 2559, E-mail: car!asax@aqlJ;DDl )
) orSax
Until "1 Ma'y 2009 haVing been represented by each of the following attorneys: l
eaul ~. Curran [email protected], $lui P. M~rgen5tert:l <smQI1jElfl.qtem@kaY~If!rJ:QlJl,) )
w. Ste,w.2Iq wallace ~Q;IJJl), ,of Kaye Scholer LLP, 425 .Park Avenue, }
New York' 1002-2. Tel. +l 2:12 a36 aooQ, Fax: +.1 212 836 8'689 1
) I
as per communlca~lon Of carl A, Sax or 1 December 2009 represented by etther one of; )
)
Andr.~w J. Durkovic, !\ffiSterdam &. Peroff' U.P., The Home-Building, 601 Thirteenth Street, N,W" )
11" FrQor ~outh, Washington, DC 2Q005/U,SA, )
Tel H 202534 1804, Fax: +120283'39392, (adurkavlc@ampeJllew.£Qffi) )
• R9bert R. ~sterdam (ptDster@amoerfaw. •c om), ~ Dean Peroff (p'emff@ampqrJ~), of )
Amsterdam &. Peruff, 45-47·Church Street, Rrckmansworth, l1ertf9rdshlre, WD3 IDQ )
l,Jnlted KIl'lgdom, Tel. [phone], Fax: [phone], )
• VI~d{mlr V. G'adyshev, of Gladyshev and Pa'rtners, AB 13, Bolshoy Strochenovsky pereulok, )
J
MQ$i::ow, 114054 Russla )
Tel. +7 49S 9S8 2447, Fax: [phone], E;·mail: gladyshev,vladimlt@yj)hoQ.com )
)
Since In~eptlon of the prol;;Eedlng:; also represented by Special Counsel: )
Chrfster Hakansson, or Wersen & Portners, Grev Turega£ao 13B, 114 46 Stod<holm, Sweden, )
Te,l. [phone], Fax [phone], E-mall: chrlg!lr.!Iakansson@weplawAe )
,
,
UNCIYAAL A'''it:n:o;,·C~=----''.IC":al Arbitral AWlrd of 30 March 201"1'-----
Vl!rS\lS
1 Thl! City 0' St. Petersburg i""'"'''"''''''"'''
, ,
Att : n.., Govo/r1'IOC, y,,'C!ltin8 I"""",.,,, HArvIENKO. Sm::>Iny, 193063 St. ~ ..... R.oJ"i.l ,
Tol. -+7 81~ ~7t> J82OJ27~ 1~24. fu. -+7 812 2H 3952. "·moll Ouberumurtll:Qov.vb ru
,
2 The Proputy MZlnagement Committee of thll City of St. Petersburll ) 1
,
AU .. Chief of the r.nrrrnit"'" Dm~'f'/ Aiol<san~mvid, Kur"kln ~'" 11" H.ro cJ H~ Prtvml,~tic>, r~UGl")
Divi.ifln .1 the ~I ~ej).lrtm'ot of Ihe Cum::'moo, H, Om'.trr; Aio!kS<lnd",vim Norheo,,..k,ov.
TSHn~ -n.-¥7. B 1i9l) 0~6/(6l 1S,t5. 7P.o tF.,.o-x>'\ Ju-+r7\l , HRUl$l; ~;7~;6 160&. f-n",;I: ~Ciloo,nl!jm sOO ru; e'.., ,,i
nOlh."".,-mv?cPrnrnjrn wt>.ru ,
,
Ite5pondcnts 1 eo<1 1. by Power 01 Anomev <!X«uled by'tI'>I: FIrs'" Dt-pLlly D,.-..ctcr Qf Ito$po_~ 2. ,
M,. O.A ly;;pustln, rq:""""ot~ by e,ther 000 ct·
• )
i,
,
,
,
,
,
•
i,
•
,
)
(3 Statl! Enterprls,e MPulko. .. o~ [SEP] ,) [J]
Att.; Dlr&IOrGcn"'~1 ~ Yud""k;h HI~HALCHENKO and "". ... TfHIROV. ... 18 PIIo!1711 Sr-!, ,)
PulkoYo A~. 19(,2 lOSt. Prl'm,bu ..... ~"""o ,
Tel. -+, 812 3;><1 352<1. F.x; -+, 812 )~4 30;.05, E·"",;I; a.PolnlirMgyDftwlkpyo.ru;
Qlj!vinenlwlPpulkovo. '\lJ ,
w.,
'+ole: On inlorm"lloo pf'I»'i<le<l. R.'PO"(!r.nl ~ t"~"n "VC' by R'opG<ld.nt. 1 nnd 5. ~n~ nD .ooy .. )
exi,t. lIS on entity; Il IS kept in this robrlirrr Sirtee Ooil',. .. nt .eol ~i r>!(er.,c.c<J in hi. "Jb~'.I"kl,' •.
) •
4 OJSC MA viation Company 'Ronlya'"ro ..." iOlt.y: st.t. T. .. """ort~ti<>~ A"Hne "RO'''~~M )
Att.: Djn!C1rJ ... Gener'lll Se'V"'l Goo'8deviCh 8c1ROvu 0..0.<.1 s"".".,i.l_ ZO~I«N, 'R. Pilotov Stn!et, I
Pult:ovoArport J5C, 196210 St. _,,;by. .... l
Tel. [phone] JSN. fax: -+ 7 812 32~ JSAS. ~'mBjl; hdild .otrJoefX"",W·l1ld1ng.aom; ,)
S lQ!jIwv. .r nvi ...... ldllleS.1::IlIII ) ,
5 Open Stoc;k Company (050) Airport "P\llkovo" (a lW"l Su'. ......... , of Keox.---.. » )
Atf.' Director GenerOI And",i Ev~"'i.vlCh Murov.m Ann. T.mlr¢'lO, 16!~ Pilo!-,. 51'·. ..... P'lilkovo Ai'p<m 1
196210 St. f'ct~"'bu(~. Fti"sk>, ne ..... 'CIlI't',"e<l1Kkl""" VnuI<O",I<"y> Str"'" l'2. l%no St. Prl.,,-;- ),
8Ufll. T,1. -[phone]~. fH. H 812 321 J175. E-moil .• ".;rgyOw,o"", "'; .... ""'. ..' CllOUI""""·n. ,I
.....
!;lb!, of Contents
A The Pallles, th~jr Repre5l'rlUlivC5 lind the ArbltrntOfs ..•.•.•.•.•... . ........................ 9
II Cllllmllllt'5 Summori>ed Chronolo9Y of the ar<umst,,~ Underly'n.g thoe present
DlsputlJ ........... ' .. ....................................................... .... ...................... 12
C T~ A.rbltrlltiun Clau5~ and (,11olc;e of La ... Agreements .............. " ...................... 31
T,h c PMtieS R~uests, Prllye"~ fOf" Relief,.,.,., , .. , .... "
Clllimanrs R"'Iuesi:5 ......... ......................................................... . .. .. 35
I[ The TnDun"I's a"ssiHcat!on ofaalmant'5 CI~lm~ ......................... .............. 39
III Respondents Request~ ......................................................... ............... 40
E Summill1zed History 01 ttl. . Arbit'lll Proc~lngs ........................................... 43
F Clalrrlilnt's ~ior R"'Iu .... ts Re,.ardln.g Interim Rehel fer His Re-l n5Ut~ment, and the
T,r ibUIlaI's Preliminary Determln~tlen" .............................. " . " ................... " .. 54
dalmant's Requests (·Interlm Request'l") " .... " ......................... 54
!! R:~slXlndeilts' Denial R~"rdln.g Interim Relief ....... " ............................... " ... S6
III The Tribunal's Procedur~1 Dcd$OM as per thoe 14" Order 0( a Ff!b",,,fY lOll 56
or
G The fufther Procedure After the Trit)unal's Rulon\! on 1nl"rtm Relief II February
2011 UP to Ihe Closing 01 the Proceedings ~ The Uilbiltty Phse ....................... 66
IMUIJ 1: Proper PerformilnclJ by Cllllrrlilnt ilnd the EIIRD Offer . ......................... 72
lssue 2: What ifttle EBRD-Qlfer, For Good Reasons, H,,(! to be Considered
n
UI,,"cccptal,le lor tile RlJ1;si~n P~rtle$? .. " .............. " ................. ,
I.we 3; 01lim for Reimbur~ment Or Pre·[).evelopmcnt Expenolture . ............ ". 73
(f;.~c 4. Claim for a 4.5% DevelOper F. .................................................... .. 76
Issue S' Termlniltion of !AT Pulkovo ................................................... __ ....... 76
lSI'''''' 7; Claim for Rc-instatement as an Inv<:slo.-______ .......................... __ ......... n
Issue B; Cost Decision ............................... ____ ........................... ................. 19
Low5 5tandi. )uriOidiction Bno ", ..l id Rcpr~senlation ......... """".,, .............. 91
I CI"lm~nt's locus standi ll1e Partl~' Arguments ........ " ............................. 91
1I O~ln'ant's loals stalldi Tile Tri~u""I'. [).etermin~tion ................ " ............ 94
",
m luriSdi<Uon over Rcspondenl$ ........................... ............................ .
IV Valid Designation "nd Rf'ptesetltaUon of Respondents .............................. 103
I A First Review 01 the "lnvesune-nt Contri!lCt" "nd SoJpporti"9 Doo..omcnts Filed in this
, Arbitration ........................................................................................ ____ .. 107
, RtfcrellCe$ \0 Provis\o .... 01 RuUI,," La"' ................. ................................ .
, introduction to the Subst~ntlve DIStussion ...................... " ...................... .
I:;(M.IC 1; ............................ " .. "" .............................. " ........ , .. " ........ ,,, ..... 120
J
fin;,1 ArlNtral Award of 30 March lOll
_ ...... ILl "'" a,,~ _ ...' y ~I_' c,.~~""'l>: .....~ 1_: OJ$C'_'-. ") L= _~ """,-
.Did the I'<lr(lign p"rtie'i/dalman( ~eff<I("I" I'tap~rtv, ~nd Were tu Flr'klnang Terms,
4$ Pmp~ by EtlRD, Satisfactory Such th~t the Russi"n P8rt'es Should H~""
A,q ;epted ~ Terms? .............................. __._ ..................... . ..•.•.•..•.•.•. 120
a.imant's POSItion. ___ ....................... __ ____. .......•.•.•.•.•.•.... .................. 120
11 Respon.dents' PDSition ..•.•.•.•.•••••••.•.•.•.. _. ..................... ,_. .................... 128
III The Trlb" n~I'$ Ot>s~rvatio"s lind A5$usmfflt .,.,.".,., ... , ... , ..... ,.,.".,.,.,. ,1)4
ISSlle 2: "" .. , - -,-, ...... "."""",, .......... , '"
_ _ _ WNlt 15 the Can ... quenao if tile ESRD Offer, For Good Renolls. riM to I>e
Cot'\!oldcrl:d Un~ptabl" by the Russian Parties] ... .. . . . ................... . ..... 143
a~lm8nr$ Positlon ......•.•.... • .•••••••••.•.•.•.... _. __. ...... 144
II RespOn~ts· l'o5ition ....... . .••••.•.•.•.•........... ___ ...•.••••••••..•.•.•.. . __ . _. ...... 145
111 The TriDuMI's Asse5sm.,nt and D~i5,on ... ______ ..•.•..•.•.•••••••••.. _. .............. l'I6
Issue 3: .................... 153
Clillmil~!'5 Claim for Reimt>IJ~mcn! of Pre-D~velopm~nt h ,)llndltures of US$
19700'000.--. respcctively by End of 2011 - With Compou~dcd lnterf'st -
R~Dres-entlng ~ MOI'ICtMY Claim 01 U5S 146'400'000.-- : ........... " ...... _ .......... , 153
CI3,mBnt"s Position ......... ......................... ___ ..................... .
(I Respondents' Pm;ition __• ..•...•.•.•.•.•.•.•.•... ____. .......................................... 156
1Il The TI1Dunal's Assessment and Deasion .. ____ .......................................... 158
o Issue4: ................ _____. ...................... _ ., ..•................ 173
,Cl al'" lor a 4.5% Develo~' Fe-e (Value<! 8t U5$ 16'00(l'O00,--)' ................ " 173
Claimant's Position ........................... ........................ , _ . 173
II RilSDon<:lents' Position .............. .. " ......................... , ............. " ..... .. P'
II( Tho TI1Dunars Assessment and Dec~lon ............... ... ..................... 175
p l~o 5: ........................................................... .-. .-....................... ____ ...... 11:/1
__W astl>e Termin;ruon of IAT P\JLkovo Correct?. ______ ....................... ___ ........... 161
,b there a violation of intem"lIonallaw? W35 there ~n .ct ilkln to expropriation? 181
Calmant's Positi",,_ " ..... , .............. . . .... , " .............. ' " .. , .................... , 181
II Re5POn~nt~' Posi~on,.,.,.,., '.'.,.,.,' ,.,.,.,.,.,.,.,.,., .... ,.'.'.'.,.,.,.,.,.,.".,.,., . . , . . 162
m The 'friDu,,,,I', A>ses5m~nl ~,'d Dedslon ............................. "........... _ ,,_ lB2
Q I.l;sue 6: .............................. ........................................................ . '"
~ All l--1onetary Cla,ms SalTed by the Russ"m St;:otule or UmltatlollS? ._. 188
CLaimant'S Position ........... , ...................... .-__ .. _. ................... _ _ ........... 186
II Ruponoentli' Po.ilion ........... " ................... . __ ...... "."",, ..................... 191
!II The TriCunal's A,"",ssmen! arid Decision '"
Issue 7: 20S
___ CI~lmtll\n IIwe.tor a .im .............. ................... .... ................. .. __ ........ 205
'I
UMCUIlAL lu'bltntiOOI ---~,Ci"OaO"Arbitl'al Awud of 30 M,lrch 20-',01'-- -
___ Docs Claimant Iyvc ~ V~lid ("Jalm for I1ls I{e-Instatement ~s a 29.7% - Investo<" For
the Alternatlv~ Airport T .,..m;"111~ •.•.•.•........................•.•.•.•.•....................... 205
___ or, Akenl8tively. Docs CI ..l mll"t HaW! a Vlliid Damage Olllm, (lor 1M a aimcd
.... mount of USS 294'50(YOOO.--, or for any Oth.,.. Amount? •.•.•...•..................... 205
CII.lm .. nt·s P<Kition •.•.•.•.•.......•••..•.•.•.•.•.•.•.•. . .... ,.,.,., .•.... .............. 206
II RespoMenh' Position .... ................. . . ............................................. . 207
",
1II The Tribunal's As","ssment and Decision. .................. , .................... ..
s.u
Overall m m~ ry (If the Tn bun~I's Asses,;;m~nI5 ~nd ConclLlsIons R.cguding Uabi lily
... . .......................... . ...................... . . . ........................................... . 214
Regardlno the ~-D"Vl!Ilopmem: Adv"""" Claim In the amount of US$
1~6·~OO'O00.--: ...... .......................................................................... 214
11 Regard1no the 4.5% Dev@'1oper Fee, O~lmed in the ArroOoJOt or US$ 18'800'000.··
'OS
1lI The Investor Cia lin. Claimed In tilt Amount of US~ 294'500'000.'" ...... 216
Regarding Arbitrlltion Costs: ... , .......................................................... 216
_ IS 511Gt1o~ 20.10 of th~ Charter ADPIlcable1 '"
I The Provision on CoSh 4l>er CMpter 20.l0 of tl1e Chartar .............. ........ 218
II CI~lm"nI's .,.,..ition ............. . .. ........................ . .................... . .............. 219
III Respondents· Position ........ .. .............................................. .............. 221
IV The Tr1I)\m",'s Detennin&llon ......................... ....................................... 222
Alloc.otlng CMts under tr", IJNCITRAL Arb;tr~tion RuIO!S ................................. 22B
eFE: The Notion of ·the Costs Follow tire Event· ....................................... nB
!I Deposits Paid to tt>e Tribunal's Account, , nd Tribu",,1 CostS . .................... 229
III The Anal AIIOC<ltion of the Tnbuno'll Com to the P~rtles ........................ ... 232
IV aalmant's Cost aaim, and Us Allocation ................................................ 239
V Raspandenls' Cost d aim. and fts Allocatron ................................. ........... 240
" A FII\ilI Word of Thanks .............................................................. ............. 24)
w The Decisions or too Arbitral Tribunal............... . ...................... .. ...... 244
1 Or>eratlve Chapter on Stand In g (locus st~frdi) and Jurisdiction ..................... 244
!! Operative Ch.,pt~r 0<1 5UOstllnco RC9~rdlng the Mon<lt.,ry Claims............... 245
III Operative Ch"pter on the Tribunal Custs ............................................... . 246
IV Operative Chapter 0 n the p"rtv CDSt$ ..................... ...................... ....... 247
V An",' Provision ....................................................................... ........... 241
••• u
UHCJ"mAl:_;":CDC'C..C . ,----~Final A.-bltral Awnd or 30 March 2012 - - --- - 'I
ADbl]!yiation, , Defined Term,
I I
[ eM -4- number Denotes a submiss,on f,le<.! by Claimant (written sub-
mls,loo/memcrial, letler)
ex + number - - - - --hE-Xtllblted OOcument~ry ~~idence fil~d by claim.n"',----!
e~pcrt
COWS + number - - --I-<w,,,''"',ss st.temet1t or report filed 011 beMII of
Claimant
lRM ... nUlnl1er ----""';;;;""~"'CS II submiwan f'led by R.espondem 1 (written
submission/memorial, letter)
~RM + nu'm".; ;.;' ,--- --- Denotes a submission hied by Respondent 2 (written
submlSliion!mcmotial, letter]
j
dOc\lmc"t~r",.",,,'.;~;O;',","""""bY
RX -4- number Exhibited Re.pondents
w~"" '.~m.", ~P'"
- - ---- -1 ., ,;""
R·WS"'" number "'00 '" .., ,,"
Rcspono:lent
",,,,~,,=-''''"''.'''"'''''.'.-·T''rminal (AT) The 60 r- P'ro'¢"ct"(""""""~-opcrllte-tr.nsler Pro)<:tl),
launth~d in 2007 &s a PPP (PlJl1lic·p.,.,.ate p"rtnc~lp)
.... Ith Il'e Northern ClIpitlll Gilleway Consortium fo' the
construction of ~" lIltern911~e InternJtional passenger
terminal ('AIPT") lit Pulkovo Airport.
The 51-pall" Dewev & LeOoeuf Prelimi""ry Inform~Oon
Mem<l<lIndum (CX-I!9) on the Project contained Ihe
PrequaliflCalion Criteria for the applirnnl:5 (and amll
ates), requiring imer aHa to owo tot~1 ...s ets of US$ 1
billion, aod a demonstration thllt the applirnnt heos
operated and m"int~lJ><;d at reast Cne ~irport with at
least 10 million p~ssengers j)er year, "nd proven lund
raising ability during LJ'e last 3 y~ers for two LJ5$ sao
mlo pl~s proj&ts.
190""",CC"",,,,,.,,,",,,"t:hc
a.n~~---- means the Closed Joint Stod<.
Compally "International Alrpon Terminal PUlkovo".
(ex-S); il was e~eruted In the R.usslan langu"llC (R)(-
2); Respondents filed an EngliSh transriltion 8' 1\)(-24
Deut&ehe MorgM G,p.nfell !!< Co., Ltd, London
Foreign Parties -------+~5 defined in the ingre5S of me Fo,mders' Agr~~ment,
- --
------, mClln Pullw>ro (Slraleglc Pan"el'5) Umrte;!, /I Cypriot<'
c.om~rw, Grnssi HDtclbetelli~ll~gs- und ErrlCMuflgs
GMBH (an AlI5tri~n prl~a\e comp~ny) ~nd SPBD In
vestl"ent Ltd., " Cypriote company; Ine term. as used I
(~
In tho fram.,wor1< of lhls Award, includ., O"m,,'
the Ullro;Ieree pUl'5uilnt to CX-66/CX-S9
-- -j'm;;;."'"'' Pulkovo
1995 lAT i,co'i,c,M"'""".,m,'cement
Founders' Agreement til<:
(CX-6); It was e~ecuted in Ihe lI~sslan lang\lage (!lX-
--U11: Respoooents filcd ~" English transi"tion as RX-23
mellnS the Ag,.".,ment on the Lease of ~ lond pkol con
~I~tlng of an ",..,a of 51'300 m2 located .. t PulkOV,,","
Hlgh .... lI~ - startov;:OYll ul, In ..,spect of .... hlch Ihe
j
Ground Lease WM slg"ed Bnd which ViM Intend<!d lor
t~ constr"~tlon
of the NIPT (eX-l7)
IAT Pulkovo means tf1e Invcstrne"t I'1i!hlclc for the IntematloMI
p<lSSenQer tcnniRllI at Ihe Pulkovo Airport, I.e. the
Closed Joint Stock Comlk'ny "Interfl.iltlonal Airport
-T<:rmlm.1 Pull:ovo', a& ;x:r the Charter, ex-s ~
Investment (onlmet This lenn .;,.~S .,5t!d by the Parties to denota I~ 1995
JAT ~Ilkovo Fourlders Agreemcilt (CX-611l.llll. tile 1995
Pulkovo Ch"rter (eX-S) • ..h ld1 tontain tenns for (\e
veloplng and op",,,lln'jl 8n Intemation,,1 oasse"ller
tenn,nal at the 51. Pe1el$llurg f'ulkovo Airport; In (M-
84 para.7, (I. . imen! cl\8recterlzed It>e contract lis
~
BOT scheme (l)Ilild - oper~tc - transfer Drojcctl, The I
CO"",,, '''0, RoO';" ''', " 00","""
"~,, ~,
to ,oos!ltute a contr1l(t In lI,e ord,nary sense.
------ I
"b~ylation
"" 10.- tl><! New International P"»trIQer Ter
mlnellOl Pulkovo Airport, " projected in 1994 by way
of the Protocol 01 Allreement ~nd the Fouooe,,'
Agreamcnt respectively tha Ch8rter
PI' ·Brief I C -PH-Bri<:f:P.-PH·Brlef] Tile ~-Hearin~ Memo,;als filed by Claimant, r'1!Stlco-
fivel)' D)' Respooo..ots land 2, Oil 20 January 2012
Russilln Pllrti ..... The 1~. liS used III this Award, denotn all of the
ReSPOnderrts/shilrcholders of !AT Pulkovo, <1$ well as
aecoroi"ll to Itle context - tAT rulkQVO it$ell'
-----+,~'~.;-NIPT pro~ct contempi~tcd
,'roject devela-pmenl as under
the Protocol of A9reement
--~
• I : :
Prvtocol 01 "~r(!(!ment U IlS the "Agr""ment" slgne<! on 16 Mmch \9'94 (eX-
2; In the~ proceedings, th,s dOO,Jmcnt was mosdv
rnfcl'T'ed to "5 "the PllltOtoi or Agreement")
- - - - - Pulkovo (StrlOt:egic P<lrtocrs) Umite(l Is ~ Cypriot 0)ITl
pany. SlIld to b~ In good I~al starldl .... (letter 01 Antis
Tri.~taf'llHde. & Sons 01 S April 2011), whic~ CIIn he
brought up to d~t<! within 6 rnonth$, upon p.lvrnent ot
"
" ••' /
,.~, 0 " <0, ".~.~ 00 _, ,. ~,rt,;"
--+"tu,~"1" ,s;""t. .°.t l>$ "5 of tile o:I!!te 0:>1 this "w~rd
f 1(: Pt-rtners, Inc. (USA)
,~ ----- Strat~lc Part""", (Hol<:!ln".) Umited Is a eayt"M Isl-
ands ComPllny, which was struck froon tile Comp.Jny"s
Rt'9lster On 31 O<:t.ober 2005, but - a.a:ordlJlg to CIII
m"nt - itS reiMt.\cmellt coold be SOUgllt within two
monti'S, and Upot1 Court approv~l; letter of C:"ym~n
or
Islantrs counsel Broadnurst 6~rri$te1"S 24 March
k:>tt,,,
2011 and of caymaJl 1""'00 Registrar of Compa
nillS 01 2B March 2011 (CX-Z42/2<43), There was no
- §eCd to as.<;ertaln the ~ctual status ~5 Of U1e d~te of
ttJos Award
sroo Inves.:;"'m'.'rn""'''',-.
Cypriot!! comp,ny, controlled
by Russllln-Amerk;.;>n ~rs(,"5.
eS"""""""";;;;'-'b'y
TrMSCript pIUS'O>.",;,C---- Th~ vci'b.!ltim Protocols professional
COOJrt reporters, or tl1e He~rlngs in ZOrlcll 16/17 De
cember 2010 arod In Stockholm L8 to 21 OctOOer 20tl
•••••
In order to enhance tr~nsparency of the str\Jcture of this Award,
ellc.h one of the followino;! Chapters A to 5 will start on a new page.
U,.CIT'RAl.t.rtJitntiof'l Final ArblU. . 1 Award of 3D Mardi 2011
The Arbitral Tribunlll has considered the following:
A The Parties, their Representatives and the Arbitrators
I The names and further details of the Parties and their representatives in
these proceedings "re as named on the first: Iwo pages of this Award-
2 Ukew;""" the Amltrators. their nomination and their "ddresses. are as shown
on the first p~gll of this Award.
3 Claimant Dr Carl A Sal(, il US citizen, lawyer and entrepreneur, described
himself as a developer who had created and led partnerships ~nd corpora
tions e(}9aged in the deVelopment, Ulnstrt.Jction, ownership, syndl~tlon and
man<>gemcnt of Income-producing properties f(lr mo~ th9n 20 years and
who w'}s, in the 19905. lhe Senior Vice President and Gener,,1 Counsel of At
IlIntic Coast Airline'!'.
" In his written witness sllltement of 15 Odober 2010 (CWS-I), Mr sax re
ferred to 14 airport projects around the globe in which StrategiC Partners
(Holdings) Limited (Cl)C"SPH") lind Mr Sax rersonally (as the Vice Chairm3n)
were involved in proposed developments; these Included projects In RUSSia,
Vietnam, Gibraltllr, Senell~l, the Philippines, Guatemala, Congo, Ecuador, In
donesia, Honduras, P~klstlln, Armenia, Jamak~ lind uruguay.'
S In the EaRD Memorandum. CX-Z3, Mr SIIX was described, as "t~ principii'
legal advisor ,md negotiator (or the Amaric".n sponsors; he Is the leading
(orce behind the Project; he was fOnnerly an olssoc18te at Dewey s.,1/lJntme
UP, and subsequently worl<eo in the in-house legal dePdrtments of United
fJ/p/'ess and Contmental Airlines, giving him a Wide range of r;ontacts In the
International airline business. "
Mr Sa~'s witn"" stlltement or 15 Octo~r 2010. C-WS-l P~IIU 5-7; A>lpendix to CM-fl4
page 25.
r;mrn . . .
I ~
~~~RAL Arb;tr~U<>n Fl"al Arbitral AWllrc! of 30 March 2012 10
_"" ". . ' , ... ,~' m -'K' cO, '~!II.. .., ..,,"• . :.1 "'" <".,r, ~_-" .... ~". ...., ;~""_"''''' r" '",'I. (') 0,.=_-,-, (5) ($0 ""r~1 ~'<_
6 Mr S~)( bBses the claims submitted In this arbitration on ~ purchase agree
ment between Strllteglc Partners (HClldinQs) Umlled (CaymJn Islandsj(SPH)
Zlnd Its 100% 5ub!;ld'ary Pulkovo (Strategic Partner.;) Limited (Cyprus){PSP),
"s ~lIers/transferors/illS5fgnors, ilnd Mr Carl A. Sall ~s pun::haser/trtlflsferce/
assignee, dated 17 December 2002 (CX-66jCX-S9), under whieh Mr Sax b<!
came the assignee of II "US$ 20+ mil/ion pre-<ievelopment e"'pense receiva
ble from /AT PuIl«)Vo~ and a purchaser ilnd transferee of ill 29.7% stock
interest in IAT Pulkovo.
7 Strategic Partners (Holdings) limited (SPH), lid described In the EBRD
Memorandum, CX-23, is a limited IIlIbility comp.lny wIth a o;apllal of US$
10'000.--, creilled by the S1V Group as well as numerous other sharehold
ers, In~luding Sal( (Holdings) Ltd, with ~ shilre of 28.82%, ilnd STY tnternil
tional, AIG, OMG, several Junior lenders, Charles Saucdo, TF Come~u & As
soc., AvPride Petroleum, Quantum Investments, and seven further share
holders. SPH was created for developing and eventually o;arrying out airport
investments world-wide, whereby SPH would be the provider of ~now-how,
8 SPBD Investment Ltd. is il Cyprus company In(orporated in 1991, acting
as a cor'lSullant lind 1IIIIson for inl{liISlors developing projeas In Russia and
FSU countries, owned by CEBM, Inc. (New Jersey) whose prindpals were de
scribed ~s being Russian American Indlvldu,,15, Mark and LeM Zilberquit, and
Valentina Lifton. CX-23. EBRO Memorandum p. 51.
9 STV Group is " US arthitecture, designer lind en91neering tompany, and
shareholder of SPH. Head-quartered In New Yor~, STV was de~rlbed as hav
ing a staff of IIbout 1'000 persons. CX-23, EBRO Memorandum page 49.
10 Respondent 1 is the City of St. Petersburg, lind Respondent 2 Is the Prop
erty Management or the City of St. Petersburg, an agency of Respondent 1,
"stabUshed as a sej)ilrate corporate body.
11 RlMpandent 3, Stllte Enterprise ·Pulkol'ow, ·SEP·, wlIS described as being
the owner of the assets at Pulkol'o Airport ~nd the entity directing the flow of
~ir traffic; on 9 June 2006, " Decree WB5 passed permitting the ~rlvatization
of Stat iii Enterprise PulkoltO. CX-14S. On 1 March 1007, it was convert"d into