ICSID considering Barmek's arbitration request against Azerbaijan

Barmek President Huseyn Arabul told APA-Economics that the sitting will consider 17 items, of which 7 have been agreed among the lawyers. He added that requests will be raised on withdrawal of Azerbaijan's Economic Development Ministry's alleged action (AZN 30 million in scam), release or house arrest for several Barmek officers being held in jail, opening of Barmek's bank accounts and issues on handover agreement.

Barmek's arbitration request demands $460 million from the government of Azerbaijan in damages. Barmek's 7 representatives will attend the sitting. Huseyn Arabul will be "present" in the arbitration sitting in online form as he is not allowed to leave Azerbaijan amid the dispute.

Barmek was accused of serious financial scams including overcharging equipment, materials and assembly jobs, deliberate overstating of consumption by the largest power-consuming industries and collecting extra payments from consumers.

In June, 2006, Azerbaijan terminated the 25-year agreement with Barmek Company, which controlled Baku and Sumgait Electricity Networks. The power supplies were brought back under state ownership.