The second arbitral award was issued on January 26, 2021, under London Maritime Arbitration Association terms in favor of SOCAR Group.
London Court of International Arbitration awarded $63 million in the second proceeding between SOCAR and Palmali. The sum consists of amounts payable by Palmali and Mubariz Mansimov, as well as interest accrued and legal expenses and disbursements. Palmali’s multi-million-dollar counterclaim was entirely dismissed.
SOCAR and Palmali used to have commercial relations previously, although the two companies have never founded a joint venture. In 2018, due to Palmali’s violation of commitments, the companies belonging to SOCAR Group initiated three arbitration proceedings against Palmali Group and Mubariz Mansimov.
In the first one, the London Court of International Arbitration proceedings awarded SOCAR Overseas $49.5 million. Thus, two out of three arbitration proceedings already resulted in $112.5 million in total awarded to SOCAR. The third dispute between SOCAR and Palmali is also the subject of arbitration proceedings. Those proceedings have been concluded now, and the Tribunal’s Award is expected.
