US court ruling on Enka dispute procedural, not final, Georgian deputy justice minister

Georgia’s Justice Ministry has rejected reports that a US court has ordered the government to pay more than $400 million to Enka Renewables over the cancelled Namakhvani hydropower project, saying the Washington proceedings concern the enforcement procedure rather than the underlying dispute.

First Deputy Justice Minister Beka Dzamashvili said on Wednesday that the main legal proceedings remain in Paris, where Georgia is challenging the 2024 arbitration award that ordered it to compensate Enka. He said the government does not expect a decision from the Paris Court of Appeal before the end of 2026.

Dzamashvili said Enka had sought recognition and enforcement of the arbitration award in Washington before the proceedings in Paris had been completed. He claimed the US court’s ruling concerned whether those enforcement proceedings could continue in parallel with the French case.

The official stressed that the Washington ruling is not a final decision on the underlying dispute and said Georgia would appeal it and continue defending the state’s interests in all relevant jurisdictions.

The comments followed reports that the US District Court for the District of Columbia had issued a ruling dated 11 September concerning Enka’s claim against Georgia. The case relates to a 2024 arbitration award issued in Paris over the termination of the Namakhvani hydropower project.

The original arbitration award required Georgia to pay Enka about $383 million, with interest continuing to accrue. The accumulated amount has since exceeded $400 million.

Georgia has asked the Paris Court of Appeal to annul the arbitration award. Dzamashvili said that proceeding remains the principal case determining whether the arbitration award will ultimately stand.

The Namakhvani project was being developed by Enka Renewables in western Georgia before the agreement was terminated in 2021. The subsequent dispute led to international arbitration and the compensation award against the Georgian state.