Peteris Pildegovics and SIA North Star v. Kingdom of Norway
ICSID · Investment (ICSID and treaty) · Norway · 22 Dec 2023
Why it matters
This case is significant for its detailed analysis of the status of snow crab as a sedentary species under the law of the sea, and the application of the Svalbard Treaty to the continental shelf. It clarifies the limits of investment protection for fishing activities in disputed maritime zones and the requirement that investments be made in accordance with host state law. The award also addresses the scope of jurisdiction under the Norway-Latvia BIT.
Summary
The dispute arose from Norway's regulation of snow crab fishing in the Barents Sea, particularly in the 'Loop Hole' (an area of high seas surrounded by Norwegian and Russian exclusive economic zones) and around the Svalbard archipelago. The Claimants, a Latvian national and his company, invested in snow crab fishing vessels and related infrastructure. They alleged that Norway unlawfully asserted sovereignty over the snow crab fishery, breached their acquired rights, violated the Svalbard Treaty, and expropriated their investment without compensation, contrary to the Norway-Latvia BIT. The Tribunal first addressed jurisdiction, finding that it had jurisdiction over most claims but not over claims relating to the Svalbard continental shelf because the BIT did not apply there. On the merits, the Tribunal held that snow crab is a sedentary species under UNCLOS, thus subject to Norwegian sovereign rights on its continental shelf. Norway's measures, including requiring licenses for snow crab fishing and excluding foreign vessels, were lawful exercises of its sovereign rights. The Tribunal found no breach of fair and equitable treatment, no expropriation, and no violation of most-favoured-nation treatment. The Claimants' investments were not made in accordance with Norwegian law, as they lacked required licenses. The Tribunal dismissed all claims and ordered the Claimants to pay costs.
The detail
Parties: Peteris Pildegovics and SIA North Star v. Kingdom of Norway
Case number: ICSID Case No. ARB/20/11
Outcome: The Tribunal dismissed all claims by the Claimants and ordered them to pay Norway's arbitration costs and half of its representation costs.
Applicable law: Agreement Between the Government of the Kingdom of Norway and the Government of the Republic of Latvia on the Mutual Promotion and Protection of Investments (BIT); ICSID Convention; Norwegian law
Issues in play: The dispute involved the interaction between Norway's sovereign rights over the Barents Sea snow crab fishery and the Claimants' alleged investment rights under the BIT. Key issues included whether snow crab is a sedentary species subject to Norwegian jurisdiction, and whether Norway's measures breached fair and equitable treatment, expropriation, and most-favoured-nation obligations.
Read the full decision at italaw ↗
Locus Standi links to the source decision and publishes its own plain-language summary. It does not reproduce the text of the award.