Procedures for Ensuring Representation in the Settlement of International Investment Disputes

Issued pursuant to
Section 12, Paragraph three
of the law On International Treaties
of the Republic of Latvia

1. This Regulation prescribes the procedures by which the representation of the interests of Latvia (hereinafter - the representation) shall be ensured in the settlement of international investment disputes, and also procedures for the cooperation, decision making and circulation of information of the institutions involved in the dispute.

2. The representation in international investment disputes (hereinafter - the dispute) shall be ensured by the State Chancellery in cooperation with the institutions involved in the dispute, other responsible institutions within the competence of which the issues related to the respective dispute lie, and also by attracting external experts if it is necessary for ensuring the representation.

3. When exercising the representation, the State Chancellery shall, in accordance with the procedures specified in laws and regulations, prepare the necessary documents based on the information provided by the institutions involved in the dispute and other responsible institutions, and also by complying with the procedural conditions and time periods specified in the rules governing the operation of the relevant international arbitral tribunal, rulings given by the international arbitral tribunal and the relevant international treaty on the promotion and protection of investments, and shall take appropriate actions in accordance with the decisions of the Prime Minister and the Cabinet.

4. If a submission on a potential dispute has been received, the State Chancellery shall submit to the Prime Minister the preliminary assessment of the submission and proposals for follow up actions (if based on the preliminary assessment of the submission there is a prima facie possibility for a potential dispute). At least the following information shall be included in the preliminary assessment of the submission:

4.1. nature of the potential dispute;

4.2. preliminary (prima facie) assessment of the validity of the submission;

4.3. proposals for follow up actions;

4.4. proposals for the necessity to develop the preliminary or main position of the State;

4.5. proposals for the necessity to form a working group for the evaluation of the submission and preparation of the preliminary or main position of the State.

5. The preliminary position of the State shall be prepared if at the moment when the submission is received and the preliminary position is being prepared the international arbitration proceedings have not been initiated in accordance with the rules governing the operation of the relevant international arbitral tribunal. The preliminary position of the State shall include the following information:

5.1. nature of the potential dispute and the legal basis of the submission;

5.2. analysis of the position of the submitter;

5.3. possible action scenarios of the State and their feasibility analysis;

5.4. other information related to the resolution of the potential international investment dispute.

6. The main position of the State shall be prepared if the international arbitration proceedings have been initiated in accordance with the rules governing the operation of the relevant international arbitral tribunal. In addition to the information indicated in Sub-paragraphs 5.1, 5.2 and 5.3 of this Regulation, the following information shall also be included in the main position of the State:

6.1. representation strategy;

6.2. other information related to the resolution of the dispute before the international arbitral tribunal.

7. The preliminary and main position of the State shall be prepared in the form of an informative statement by attaching the draft protocol decision of the Cabinet meeting on the follow up actions thereto, and shall be submitted for examination to the Cabinet in accordance with the specified procedures.

8. If the Prime Minister or the Cabinet has ordered the formation of a working group for the evaluation of the submission and development of the preliminary or main position of the State, the State Chancellery shall send an invitation to the relevant institutions to delegate a representative for the participation in the working group within a specified period of time. The institution shall delegate a representative who is competent in the field of the relevant dispute.

9. The composition of the working group, its tasks to be carried out, deadlines for their execution, and, if necessary, also other issues related to the work of the working group shall be specified by the order of the Director of the State Chancellery.

10. The representative of the State Chancellery shall lead the working group and ensure the development of the preliminary and main position of the State for submitting to the Cabinet.

11. The institutions involved in the dispute and other responsible institutions shall, according to their competence, provide their opinion, assessment, documents and other information that is necessary for ensuring the representation within the time period specified by the State Chancellery or working group (if such has been formed). The submitter of information shall be responsible for the correctness and validity of the prepared information.

12. After receipt of the final ruling of the international arbitral tribunal, the State Chancellery shall prepare an informative statement on the assessment of the judgment of the international arbitral tribunal and proposals for follow up actions, and submit them to the Cabinet in accordance with the specified procedures.

13. The State Chancellery shall inform the Prime Minister and the Cabinet on the progress in the settlement of the dispute as necessary, but at least once a year.

14. Public communication regarding the representation in disputes shall be ensured by the State Chancellery or other institution determined by the Cabinet.

15. The State Chancellery shall publish on its website the following information on the international arbitration proceedings initiated against the State in which the composition of the arbitral tribunal has been determined, unless it has been otherwise provided for in the applicable international treaty on the promotion and protection of investments, rules governing the operation of the relevant international arbitral tribunal or an agreement between the parties of the dispute:

15.1. the title of the case;

15.2. the date of receipt of the notification of the commencement of international arbitration proceedings;

15.3. the name and surname or the firm name, and the country of origin of the claimant;

15.4. international treaty on the promotion and protection of investments which forms the basis for the dispute;

15.5. the applicable rules governing the operation of the relevant international arbitral tribunal;

15.6. the institution which will settle the dispute (if such has been determined);

15.7. economic sector;

15.8. the requested award or compensation (if indicated);

15.9. composition of the international arbitral tribunal (if applicable).

16. The State Chancellery may also publish other information not referred to in Paragraph 15 of this Regulation that is related to the dispute, if this is permissible in accordance with the applicable international treaty on the promotion and protection of investments, rules governing the operation of the relevant international arbitral tribunal, rulings of the international arbitral tribunal or an agreement between the parties of the dispute.

17. The Cabinet Order No. 146 of 5 March 2004, Regarding the Concept "On the Creation of a Mechanism for the Representation of the Interests of the State related to Legal Proceedings" (Latvijas Vēstnesis, 2004, No. 37), is repealed.

Prime Minister Māris Kučinskis

Deputy Prime Minister,
Minister for Economics Arvils Ašeradens

Translation © 2018 Valsts valodas centrs (State Language Centre)