Mamuka Khazaradze and Badri Japaridze have lost the arbitration dispute over the Anaklia Port project. The relevant statement was released by the Ministry of Justice of Georgia.

The case was reviewed by the International Centre for Settlement of Investment Disputes [ICSID] [a World Bank arbitration body based in Washington].

“The ICSID Tribunal concluded that the failure of the Anaklia Port project lies entirely with Mamuka Khazaradze, Badri Japaridze, and their partners. The Georgian government was found to have played no role in obstructing or interfering with the project.

According to the ruling, the arbitration panel accepted all the legal arguments presented by the Georgian Ministry of Justice. The tribunal determined that the financial responsibility for the project rested entirely with the investor, who failed to secure the necessary funds for its implementation. The risks associated with the project were deemed to be commercial in nature and were borne solely by the investor. Moreover, the government’s termination of the contract was declared lawful, as the investor had repeatedly missed financing deadlines.

The tribunal also found that the Georgian state had consistently supported the Anaklia Port project throughout the duration of the agreement. It confirmed that criminal charges of money laundering against Khazaradze / Japaridze were not subject to dispute in this arbitration. Furthermore, it was determined that the government did not interfere in the consortium’s efforts to attract investors, including from American investment funds.

Bob Meyer, a Dutch partner of Khazaradze / Japaridze, demanded USD 64 million in the arbitration but had his claims fully rejected. Instead, he was ordered to pay USD 6.5 million to the Georgian government.

A year earlier, the Anaklia Development Consortium had lost a related dispute in the Paris Arbitration Tribunal. In that case, the consortium had sought USD 1.5 billion in damages from the Georgian state.

The Paris tribunal dismissed all claims and ordered the consortium to pay USD 650,000 to the government. Khazaradze and Japaridze did not appeal the decision and paid the amount in full, effectively acknowledging that the failure of the Anaklia Port project was due to their own actions”, - reads the statement.