Becchetti acquitted by Paris Court of Appeal – Albania ordered to pay him 110 million euros in compensation

The Paris Court of Appeal rejected Albania's request to annul the ICSID international arbitration decision, which obliges the state to pay 110 million euros to Italian investor Francesco Becchetti.

Albania Had argued that the iCSID award was Made in violation of procedural rules and that the arbitral body exceeded its powers, seeking to have it declared Invalid. however, the french court ruled that these claims were unfounded and that the arbitration was conducted in accordance with international standards.

This final decision makes the economic penalty against Albania enforceable, constituting a significant defeat for the state in the field of international arbitration. The case highlights serious concerns about the legal certainty of contracts, the way in which relations with foreign investors are managed and the protection of the public interest in the negotiations of such agreements.

In addition to the high financial cost, the case is also expected to affect the international perception of the investment climate in Albania.

The Paris Court of Appeal overturns previous arbitration decisions only in exceptional cases, which indicates that the level of review is very high and the chances of their change are minimal.

Why was Albania fined?

The case began with the actions of the Albanian authorities against Francesco Becchetti's businesses in 2014-2015, which included the seizure of assets, the freezing of accounts, criminal proceedings and the closure of Agon Channel.

The Italian investor claimed that the state intervened in an unfair and disproportionate manner, violating the bilateral investment protection agreement between Albania and Italy.

ICSID concluded that these actions constituted unfair treatment and a breach of contractual obligations, vindicating Becchetti and obliging Albania to pay 110 million euros. The government's attempts to annul the award, first at the ICSID Annulment Committee and then at the Paris Court of Appeal, failed, as international authorities found that the procedures had been followed and there were no violations justifying annulment.

This decision makes the award fully enforceable and constitutes one of Albania's biggest defeats in international arbitration.