As reported by UNIAN citing El Pais, Spain has lost a case filed by aggrieved investors in the International Center for Settlement of Investment Disputes (ICSID).
The investors have been affected by reductions in renewable energy subsidies earlier guaranteed by the government, and now Spain has to pay $128 million in compensation plus interest charges.
As reported, the Spanish government has violated article 10 of the Energy Charter Treaty and thus deprived the plaintiff of fair and equitable treatment.
The claim of Eiser Infrastructure Limited and its affiliate Energia Solar Luxembourg, investing in the production of renewable energy in the territory of Spain, has been partially sustained, with the total amount of compensation exceeding 300 million euros.
El Pais says the loss may affect the country's investment climate and tax payers as it sets a precedent for its pending claims.
If Spain loses these claims, the cost to Spanish taxpayers could run into the hundreds of millions of euros.
In Ukraine, similar situation involving the violation of investor's rights occurred with the Chinese state company CNBM International. Green tariffs for their sun stations were retrospectively cut. CNBM has stated it is filing lawsuits against Ukraine in international courts.
As previously reported, China is to invest $36 billion in the projects such as the New Silk Road intended to strengthen economic relations between Europe and Asia. Over the next three years China is going to allocate 60 billion yuan ($8.7 billion) in assistance for developing countries and organizations participating in the New Silk Road project. According to Ambassador of China in Ukraine Du Wei, large-scale Chinese investments may arrive in Ukraine only after investors are provided with the necessary level of protection of their rights and funds.
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