Orascom Telecom Holding (OTH) has submitted a notice of arbitration against the Algerian government with regard to its subsidiary Orascom Telecom Algeria (OTA or Djezzy).
The Algerian Court of first instance recently decided to fine Djezzy AD99bn…
Orascom Telecom Holding (OTH) has submitted a notice of arbitration against the Algerian government with regard to its subsidiary Orascom Telecom Algeria (OTA or Djezzy).
The Algerian Court of first instance recently decided to fine Djezzy AD99bn (US$1.3bn) and criminally convict a senior member of its executive team over alleged breaches of foreign exchange regulations.
“In the notice of arbitration, OTH asserts that since 2008 its rights under the Agreement on the Promotion and Reciprocal Protection of Investments between Egypt and Algeria have been violated by actions taken by the Algerian government against OTA,” the company stated.
“This international investment treaty claim is brought under the arbitration rules of the United Nations Commission on International Trade Law. (…) Without prejudice to its legal rights and actions, OTH continues to be open to finding an amicable resolution with the Algerian government that is mutually beneficial to both parties and would fully support any initiative by its majority shareholder, VimpelCom, to seek an amicable resolution with the government,” OTH added.
In late March, OTH had announced it would appeal the Algerian Court of first instance’s judgment.
