News
Swedish Supreme Court Decision Favors Ukraine, Ends Long-Running Dispute
Analysis Group Principal Jessica Resch and Senior Advisor Tim Giles were retained as quantum experts on behalf of Ukraine in a Stockholm Chamber of Commerce (SCC) arbitration brought by three Cypriot companies – Littop Enterprises, Bridgemont Ventures, and Bordo Management – related to alleged losses associated with minority shareholdings in Ukrnafta, Ukraine’s largest oil and gas producer. The claimants alleged that Ukraine breached Energy Charter Treaty (ECT) rules by capping the price at which Ukrnafta could sell gas to Ukraine’s state-owned oil company Naftogaz at a level lower than Ukrnafta’s cost of production.
Ms. Resch and Mr. Giles submitted expert reports and gave evidence during the hearing before the tribunal, which included Julian Lew, Yves Fortier, and Rodrigo Oreamuno. Their evidence focused on the quantum of damages associated with the claimed losses and addressed the impact of claimants’ alleged fraudulent activities.
The SCC tribunal declined jurisdiction over the companies’ claim on the grounds that the claimants’ investment in Ukrnafta was not protected under ECT rules. The claimants sought to annul the tribunal’s award in the Swedish courts, later requesting to appeal the lower court’s decision not to overturn the tribunal’s judgment. The Svea Court of Appeal upheld the tribunal’s decision to decline jurisdiction and ordered the claimants to pay part of Ukraine’s arbitration costs. The Swedish Supreme Court declined to hear a further appeal, bringing the long-running dispute to an end.
Associated People
Tim Giles
Senior AdvisorMr. Giles is a financial economist focusing on valuation and financial analysis. He has worked extensively in international arbitration, including commercial treaty claims, and has been engaged in some of the most complex and high-profile financial and non-financial disputes. His experience covers a range of industries across the world, including financial services, energy, pharmaceuticals, software, luxury goods, mining, manufacturing, property development, and hotels. Mr. Giles has testified as a quantum expert in all the major international arbitration forums and in a number of High Court of Justice cases in London. In Galapagos Bidco S.À.R.L. v. Dr. Frank Kebekus, et al., a contentious financial restructuring, he was instructed by counsel for Galapagos Bidco S.À.R.L. Mr. Giles has also assessed the impact of restated accounts on the value of Autonomy in HP/Autonomy v. Lynch and Hussain; other restructurings, including Saltri III Ltd v. MD Mezzanine SA SICAR; and the challenge to the $50 billion Yukos award in the Netherlands.
Jessica Resch
PrincipalMs. Resch has extensive experience consulting on finance, financial economics, and accounting issues in complex litigations and arbitrations, with a particular focus on international arbitration. She is a testifying expert, specializing in the quantification of economic damages in both international arbitration and litigation. Ms. Resch has advised on valuation issues such as cost of capital and valuation discounts and premia. Her damages and valuation work has spanned disputes over complex financial instruments; oil and gas contracts; government expropriation matters; and shareholder disputes throughout the UK, Russia, Central Asia, and South America in both commercial arbitration and investment treaty arbitration. She has also consulted on state aid proceedings in the banking industry and provided damages assessments in litigation matters before the UK High Court of Justice. Prior to joining Analysis Group, Ms. Resch was a partner and co-founder of an economics consulting firm.