Russia has appointed former Chief Justice of India DY Chandrachud as its arbitrator in an investment treaty dispute with Ukraine’s state-owned Oschadbank, as both countries grapple with the repercussions of the ongoing conflict following Russia’s invasion of Ukraine.
In a notable development in the realm of international arbitration, Russia has appointed Justice DY Chandrachud, the former Chief Justice of India, as its arbitrator in a complex investment treaty dispute with Ukraine’s state-owned bank, Oschadbank. This appointment is a critical aspect of the ongoing legal confrontations that have emerged from the geopolitical tensions escalating from Russia’s military actions in Ukraine, particularly following the full-scale invasion that commenced in February 2022.
Details of the Dispute
Oschadbank has initiated arbitration proceedings against Russia, claiming significant financial losses stemming from military operations in the eastern regions of Donetsk, Luhansk, Kherson, and Zaporizhzhia. These areas have been heavily impacted by Russian military actions since the escalation of hostilities. Oschadbank’s claim is reportedly valued in the hundreds of millions of dollars, following a notice of dispute served to Russia in July 2025, which allegedly went unanswered.
The arbitration is based on the 1998 bilateral investment treaty between Ukraine and Russia designed to safeguard mutual investments. Oschadbank’s current claims follow its previous arbitration efforts related to the annexation of Crimea in 2014, where it was awarded approximately $1.1 billion by a tribunal seated in Paris in 2018. However, that award has faced a series of legal challenges in France, reflecting the intricate and often contentious nature of international arbitration involving state actors.
Composition of the Tribunal
The tribunal for this arbitration consists of three members. Dyalá Jiménez, a Costa Rican arbitrator and former trade minister, has been appointed as the presiding arbitrator, a decision jointly agreed upon by both Russia and Ukraine. Ukraine’s Oschadbank selected Stavros Brekoulakis, a Greek arbitrator and professor at the National University of Singapore, as the third member of the tribunal. This diverse composition underscores the international dimensions of the dispute and the expertise required to navigate such complex legal issues.
In terms of legal representation, Russia is advised by Andrea Pinna, a partner at Pinna Goldberg, alongside counsel Pratyush Panjwani and senior associate Dimitrios Papageorgiou. Conversely, Oschadbank’s legal team comprises partners from Quinn Emanuel Urquhart & Sullivan, including Epaminontas Triantafilou and Alex Gerbi, as well as attorneys from Asters, Oleksiy Didkovskiy, Andrii Pozhidayev, and Oksana Legka.
Background of Previous Claims
Oschadbank’s earlier legal actions concerning the annexation of Crimea highlight the difficulties faced by Ukrainian entities in seeking redress against Russia. The tribunal’s award of $1.1 billion in 2018 was subjected to extensive scrutiny in French courts. In 2021, a French court set aside the award, accepting Russia’s argument that the treaty’s arbitration clause was applicable only to investments made after Oschadbank established its branch in Crimea. Nonetheless, the French Court of Cassation reinstated the award in 2022, ruling that the courts lacked jurisdiction to review the tribunal’s pertinent provisions.
In subsequent years, the Paris-seated tribunal issued further decisions rejecting Russia’s attempts to revise the award based on purported new evidence. Recently, the Paris Court of Appeal annulled the tribunal’s decision regarding Russia’s request for a revision, citing concerns about the fairness of the process due to an amicus curiae brief co-signed by arbitrator Charles Brower. This ongoing legal saga reflects the complexities and challenges inherent in international arbitration, particularly when state parties are involved.
Justice DY Chandrachud’s Previous Involvement
Justice Chandrachud’s engagement in this arbitration is particularly significant, as he has previously been approached by Russia to serve as an arbitrator in a separate case involving the German energy company Wintershall Dea. However, he declined the offer due to potential conflicts of interest, as he was simultaneously appointed as the authority for the Wintershall proceedings. This previous experience illustrates the delicate balance of interests that arbitrators must navigate in international disputes.
The appointment of Justice Chandrachud brings a wealth of legal expertise to the arbitration process between Russia and Ukraine. His role may significantly influence the proceedings as both nations continue to grapple with the legal ramifications of the ongoing conflict, which has far-reaching implications for international relations and investment security. The outcome of this arbitration could set important precedents in the realm of international investment law, especially concerning state actions in times of conflict.
