What happened
In 2024, Mikhail Fridman (founder of Alfa Group) commenced investment arbitration against Luxembourg under the 1989 bilateral investment treaty (BIT) between the Belgium-Luxembourg Economic Union and the USSR, challenging the freezing of his assets after he was added to the EU sanctions list in February 2022. The claimant characterized these measures as indirect expropriation and a breach of the fair and equitable treatment standard. The claims are valued at approximately $16B. The ad hoc arbitration is conducted under the UNCITRAL Rules and administered by HKIAC, with its seat in Hong Kong. The chair of the tribunal was appointed in November 2024. As of June 2026, the proceedings are at an early stage.
Why it is notable
One of the largest investment claims brought by a Russian businessman against an EU member state, seeking compensation for an asset freeze imposed on sanctions grounds.