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US–Estonia BIT: PCA rejects ELA USA’s FET and expropriation claims over Tallinn port; jurisdiction upheld, US$206m denied; each party bears own costs

Published on: 10 April 2025

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ELA USA, Inc v The Republic of Estonia 2018-42 PCA

The tribunal’s award was sent to the parties on 21 February 2025. Its online release was publicised on 30 March 2025 in a press statement issued by claimant ELA USA Inc. The tribunal was made up of Judge Bruno Simma as presiding arbitrator, Professor Hélène Ruiz Fabri, nominated by ELA, and Judge Peter Tomka, nominated by Estonia.

Seaport investment

From around 1996, ELA, a commodities trading enterprise, began investing in a seaport in Tallinn, Estonia, known locally as Lennusadam, via four partly indirect subsidiaries. Having used other Estonian ports for its trading, ELA considered it could grow by obtaining a port of its own. In 1997, it concluded two 20-year leases for the seaport’s use. Around that period, Estonia contended that the seaport had become state property after the collapse of the Soviet Union, and in 1997 commenced court proceedings in Estonia asserting title to the seaport. Over the ensuing years, ELA continued to commit funds to the port and to its projected development...

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