In the event that “Lidian” company, implementing the Amulsar mine development project, applies for arbitration, it is possible to submit a claim for the minimum investment amount, and the amount of compensation is determined by the court, considering various factors, including, for example, the expected income. International arbitration specialist Arayik Papyan announced this.

During today’s press conference, he noted, as “Armenpress” reports, that several numbers of investments have been mentioned recently: 500 million, 700 million and 2 billion dollars. However, the public will only be informed about the money invested by Amulsar if the investor submits a claim to the arbitration court.

“The state should make a decision that it should completely regulate the mining field, tighten the legislation, and of course, measures should not be taken that could create a situation where any investor finds himself in a target situation and all actions are focused against one importer. This is dangerous because it creates a fertile ground for foreign investors to bring arbitration cases against Armenia, which is an undesirable phenomenon and includes many dangers,” the specialist noted.

Speaking about the effects of mining license revocation in general, Papyan noted that it is possible to resort to arbitration through corporate restructuring, as well as through an individual who ultimately owns or owns these assets. There may even be a question of diplomatic protection, that is, investors turn to their country stating that they need protection.

“In the case of Lydian, a situation was created when the corporate restructuring was carried out and after that the notification of the existence of a dispute was sent (subsidiaries of Lydian International Limited Company, Lydian UK Corporation Limited and Lydian Canada Ventures Corporation, announced on March 11, 2019, the existence of disputes with the Armenian government and informed that they can apply for international arbitration – ed.). This is not accidental at all. if the notification of the existence of the dispute was sent before the corporate reorganization, the arbitration court would have refused to accept its jurisdiction and the case would have been lost from the beginning,” Papyan emphasized.

In general, when applying for arbitration, the investor can claim that discriminatory actions have been applied to him, there can be issues of discrimination, indirect expropriation (deprivation), not showing fair, impartial treatment, physical protection of investments, which can cause significant damage to the positions of Armenia, if the investor is able to win.