Turkmenistan has achieved a complete victory in a long-standing international arbitration dispute with Russian telecom giant Mobile TeleSystems (MTS), according to a report by Orient.tm. The arbitration tribunals ruled in favor of Turkmenistan, ordering MTS to compensate the country for millions in legal and arbitration expenses.
In a statement released on July 1, Turkmenistan’s Ministry of Foreign Affairs announced the official conclusion of the proceedings, emphasizing the country’s commitment to international obligations and legal norms.
Over the past few years, numerous misleading media reports have circulated regarding MTS’s alleged claims against Turkmenistan. In response, Turkmenistan’s government and economic institutions made considerable efforts to resolve the matter through peaceful, pre-trial negotiations. Despite these efforts, MTS initiated international arbitration proceedings in 2018.
The tribunal, established under the rules of the International Centre for Settlement of Investment Disputes (ICSID), ultimately dismissed all substantive claims made by MTS. Moreover, it ordered MTS to pay Turkmenistan more than $11 million to cover legal and arbitration-related costs.
The tribunal found that the company’s operating contract was a legitimate commercial agreement governed by Turkmen law, and its term had expired in accordance with the contract’s provisions. As a result, MTS had no legal grounds or expectations for contract renewal. The tribunal also confirmed that Turkmenistan had not engaged in any unlawful actions against the company, rejecting all of MTS’s remaining claims.
Three months after the ICSID tribunal’s decision, MTS attempted to challenge the ruling in Swedish courts, as the arbitration was held in Stockholm. However, on June 27, 2025, the Svea Court of Appeal definitively dismissed the company’s appeal and upheld the tribunal’s decision in favor of Turkmenistan.
The court also ordered MTS to reimburse Turkmenistan an additional €589,000 in legal costs—on top of the previously awarded $11 million.
Crucially, the decision of the Swedish appellate court is not subject to further appeal, making it final. This outcome reaffirms that Turkmenistan’s actions fully complied with international legal norms and that the country remains a responsible and law-abiding participant in the global economic system.
CentralasianLIGHT.org
July 2, 2025