EVN AG v. The former Yugoslav Republic of Macedonia
ICSID · Investment (ICSID and treaty) · North Macedonia · 2 Sep 2011
Why it matters
This case is an example of an investment treaty dispute that was settled before a final award on the merits. It illustrates the role of ICSID in facilitating settlement and issuing consent awards under Rule 43(2). The case also shows how provisional measures applications can be withdrawn without prejudice during settlement negotiations.
Summary
EVN AG, an Austrian energy company, initiated ICSID arbitration against the former Yugoslav Republic of Macedonia under the Austria-Macedonia BIT and the Energy Charter Treaty. The dispute arose from EVN's investments in Macedonia's energy sector. After filing the request for arbitration in May 2009, EVN also applied for provisional measures, which it later withdrew without prejudice. The tribunal was constituted in October 2009. Following a period of negotiation, the parties reached a settlement agreement on 1 June 2011. They jointly requested the tribunal to embody the settlement in an award under ICSID Arbitration Rule 43(2). The settlement provided that each party bear its own costs and share tribunal costs equally. The tribunal issued the award on 2 September 2011, recording the settlement agreement verbatim. No substantive issues were decided on the merits.
The detail
Parties: EVN AG v. The former Yugoslav Republic of Macedonia
Case number: ICSID Case No. ARB/09/10
Outcome: The parties settled; the award records the settlement agreement on agreed terms, with each party bearing its own costs and sharing tribunal costs equally.
Applicable law: Austria-Macedonia BIT (2002) and Energy Charter Treaty
Issues in play: The case involved investment treaty protections under the BIT and ECT, but no substantive legal collision was decided as the case was settled.
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