What happened
In December 2018, the Russian state-owned company Inter RAO commenced arbitration at the Arbitration Center of the Santiago Chamber of Commerce against the Ecuadorian state-owned energy holding CELEC over the unilateral termination of a contract to supply electromechanical equipment for the Toachi Pilatón hydroelectric plant. In 2023, the arbitrators awarded Inter RAO approximately $45M plus interest. On March 1, 2024, the Santiago Court of Appeals rejected the application by Ecuador and CELEC to set aside the award. According to media reports, the debt remains unpaid and interest continues to accrue.
Why it is notable
One of the few examples of a Russian state-owned company prevailing in arbitration in Latin America against a foreign state-owned holding, with the award upheld despite an attempt to set it aside in the Chilean courts.