DY Chandrachud takes key role in German energy firm vs Russia dispute

India Today

06-06-2025

In a significant development in the ongoing arbitration between German energy company Wintershall and Russia, former Chief Justice of India DY Chandrachud has been designated as the appointing authority under the Energy Charter Treaty, a multilateral pact that works under a framework for cooperation in the energy sector.DY Chandrachud, who demitted office as the Chief Justice in November 2024, is widely regarded for his contributions to constitutional law and international philosophy of law. His appointment signals the continued involvement of eminent jurists from diverse legal traditions in resolving high-stakes international investment disputes.advertisementThe development came following the resignation of Eduardo Siqueiros as the appointing authority on May 22, 2025.
The designation of the appointing authority comes under the rules of the Permanent Court of Arbitration (PCA), which frequently provides administrative support in disputes between investors and states under the Energy Charter Treaty framework.In April this year, Wintershall moved the ECT tribunal seeking an anti-suit injunction directed against the Russian court proceedings, in response to which Moscow had asked for a short suspension of arbitration proceedings also offering that the court proceedings in Russia would be suspended.One of the arbitrators in the case resigned after Russia didn't accommodate his request to terminate its injunction proceedings and ensure that the ECT tribunal and arbitration counsel were immune from prosecution in Russia.This was followed by another procedural order in May where the truncated ECT tribunal agreed to temporarily suspend arbitration proceedings conditional on termination of Russian injunction proceedings. It was also stated that such proceedings amounted to a breach of the arbitration agreement.advertisementIn a May 24 order, the two arbitrators directed that the case resume, and Moscow was ordered to terminate the Russian injunction proceedings immediately and not file proceedings that would jeopardise the arbitration's integrity.As per December 2023 Russian decrees, Wintershall Dea's stakes in the Yuzhno-Russkoye oil and gas condensate field and the Achimov gas projects were given back to newly-created Russian companies and offered for sale to Gazovyye Tekhnologii.The company had initiated arbitration proceedings against Russia, which had repeatedly protested against such cases, saying they should have been considered only in Russian courts.Notably, on one hand, the state has filed a challenge against the two remaining arbitrators, and on the other, Wintershall, in this case, has sought the move of the seat of arbitration from Dubai to London.As per the arbitrator's latest order, the decision regarding seat relocation was deferred until either the reconstitution of the tribunal, or resolution of Russia's challenge against the two arbitrators, whichever is earlier.Under the ECT, the appointing authority plays an important role and has responsibilities, including facilitation of the constitution of the arbitral tribunal, particularly in case of disagreements between parties.Dr DY Chandrachud served as the Chief Justice of India from November 2022 to November 2024 and was succeeded by Justice Sanjiv Khanna, who also retired last month.Trending Reel