On August 21, 2025, the appellate tribunal of the International Centre for Settlement of Investment Disputes (ICSID), operating under the World Bank, dismissed Georgia’s appeal and upheld a 2022 ruling requiring the country to pay $76 million in damages to Russian energy company Inter RAO.

The decision finalizes a years-long legal battle stemming from two arbitration disputes initiated in 2017 by Inter RAO’s Dutch-registered subsidiaries — Gardabani Holdings B.V. and Silk Road Holdings B.V. — which collectively sought $200 million in compensation from Georgia for alleged treaty violations.

One case was handled by the Arbitration Institute of the Stockholm Chamber of Commerce, which ruled on September 9, 2022, that Georgia must pay $112 million. A second case, overseen by ICSID, resulted in the October 27, 2022 ruling for $76 million. ICSID clarified at the time that the $76 million was included within the larger Stockholm award, not in addition to it.

Following both rulings, Georgia filed appeals. While the appeal of the Stockholm decision is still pending, the ICSID tribunal has now definitively rejected Georgia’s request for partial annulment, locking in the $76 million obligation.

It remains unclear whether the $76 million figure includes interest for delayed payment. If interest was stipulated in the original ruling, the total amount owed could now be significantly higher.

Background of the Dispute

The arbitration cases were based on a bilateral investment treaty between Georgia and the Netherlands, which protects foreign investors' rights. Inter RAO — which owns a 75% stake in Tbilisi’s electricity distributor Telasi, as well as two major hydropower plants (Khramhesi 1 and 2) through its Dutch subsidiaries — invoked this treaty during the arbitration.

At the center of the dispute was a March 31, 2011 memorandum between Inter RAO and the Georgian government. The agreement guaranteed that electricity tariffs would not be reduced for 15 years. The tribunal ruled that Georgia had breached this commitment, violating the treaty protections for Inter RAO’s Dutch-based entities.

BMG has contacted the Georgian Ministry of Justice for comment and is awaiting a response.