Sanitek to File Claim Against Armenia at International Centre for Settlement of Investment Disputes

The company 'Sanitek' has issued a statement indicating that it will file a claim against Armenia at the International Centre for Settlement of Investment Disputes (ICSID) in a bid to recover the value of its investments.

The company reminds that for almost two years it has been facing criminal prosecutions against itself and its shareholders, noting that these criminal cases have not been discontinued.

The statement mentions that, under the instruction of the Mayor of Yerevan, the municipality has initiated the process of terminating contracts signed with the 'Sanitek' group, aiming to transfer those contracts, including the assets of 'Sanitek,' to a company owned by the Municipality.

“As a result of these actions, the 'Sanitek' group has been forced to cease operations and go bankrupt, which has, of course, led to extremely negative consequences for the shareholders of the company,” the statement reads.

It is noted that the 'Sanitek' group has repeatedly approached the current authorities regarding the resumption of negotiations, expressing its willingness to make additional investments, but has received no response, and all requests and attempts to reach an agreement have gone unanswered.

“For months, 'Sanitek' hoped that amidst the fierce war and devastating pandemic, the Armenian authorities would demonstrate goodwill and show willingness to resolve the situation. However, the government continued to reject any cooperation and deny its approach, leaving 'Sanitek' with no alternative but to file a claim against Armenia at the International Centre for Settlement of Investment Disputes (ICSID) to recover the value of its investments, which will amount to tens of millions of dollars,” the statement concludes.