OAO Arkhangelskoye Geologodobychnoye Predpriyatiye v. Archangel Diamond Corp.

Case No. T 2277-04 (2005)

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OAO Arkhangelskoye Geologodobychnoye Predpriyatiye v. Archangel Diamond Corp.

Svea Court of Appeal
Case No. T 2277-04 (2005)

RW

Facts

Russia’s state-owned Arkhangelskoye Geologodobychnoye Predpriyatiye (GPA) (defendant) partnered with the Canadian company Archangel Diamond Corporation (ADC) (plaintiff) to form a joint diamond-mining venture. The partnership contract contained an arbitration clause referring any contract dispute to Swedish arbitrators. The contract also provided for the eventual transfer of the joint venture’s license to another entity jointly owned by GPA and ADC. A dispute over the license-transfer provision subsequently arose. ADC submitted the dispute to a Swedish arbitration panel. The arbitration panel noted the likelihood that Russian law barred foreign arbitrators from resolving disputes involving Russian natural resources. The panel reasoned that Russia had every interest in the dispute whereas Sweden had none and that Russian law should thus govern all aspects of the dispute. The panel dismissed ADC’s complaint for lack of jurisdiction. ADC appealed to a Swedish district court, which reinstated Swedish arbitration proceedings. GPA appealed to Sweden’s intermediate Svea Court of Appeal.

Rule of Law

Issue

Holding and Reasoning ()

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