An investor-State tribunal, chaired by Neil Kaplan QC, has ruled that it has no jurisdiction to hear Turkcell’s claims against the Islamic Republic of Iran under the Turkey-Iran bilateral investment treaty. Turkcell is Turkey’s largest mobile operator, and the US$ 600 million dispute arose from a tender process for the second GSM licence to be awarded in Iran (one of the largest foreign investments in Iran).
The award, published 17 October, held that no qualifying “investment” was made within the meaning of the treaty. The tribunal went on to order Turkcell to reimburse Iran a sum of over €1 million, which represented the state’s contribution to the arbitration costs.
Iran was represented by Toby Landau QC and an Eversheds’ team led by partners David Sellers and Will Thomas.
