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Dutch court declares that ECT award against Spain qualifies as state aid (Spain v AES & AEF)

Published on: 27 May 2025
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Article summary

Arbitration analysis: The District Court of Amsterdam decided in its judgment of 5 February 2025 that an arbitral award on the basis of the Energy Charter Treaty (ECT) qualifies as state aid under Article 107(1) of the Treaty on the Functioning of the European Union (TFEU). On that basis, the court ordered the Dutch investors to compensate Spain for any sums paid pursuant to the award. In practical terms, the judgment effectively reverses the outcome of the Swiss-seated arbitral proceedings between the Dutch investors and Spain, at least in terms of the damages that had been awarded to the Dutch investors for Spain’s breaches of the ECT. The repayment order applies unless and until the European Commission declares the ECT award wholly or partially compatible with the internal market. Any attempt by the Dutch investors to enforce the award, even if enforcement action is taken outside the EU and by a third party, will trigger...

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