Published 22 October 2019
In Eskosol in liquidazione v. Italy, a distinguished tribunal rejected a preliminary objection to dismiss a claim for manifest lack of legal merit pursuant to Art. 41(5) of the ICSID Arbitration Rules. The tribunal addressed several novel issues arising from the language of Art. 26(7) of the Energy Charter Treaty ("ECT") and made some other general policy considerations. However, in light of the high threshold required to rule a claim as unmeritorious at the41(5) stage, the tribunal did not take a position on such issues. This decision represents a good opportunity to analyze an unexplored part of the ECT and to identify the mandatory regime of foreign control in the ICSID Convention.