Wallin & Partners has successfully represented the Republic of Poland in a case before the Swedish Supreme Court regarding partial annulment of an arbitral award rendered based on Energy Charter Treaty. The Supreme Court ruled in favor of the Republic of Poland in a judgment rendered on 26 May 2025 (case no. T 555-24).

Five investors, four of whom were from different EU countries and the fifth from Switzerland, requested for arbitration against Poland with reference to the Energy Charter Treaty’s rules on arbitration. The investors claimed damages on the grounds that their investments had become worthless as a result of Poland’s actions. The Republic of Poland contested the claim, and that the arbitral tribunal had jurisdiction. The arbitral tribunal considered itself competent to examine the case but dismissed the claims for damages.

It follows from EU law that the provisions of the Energy Charter Treaty on arbitration are not applicable to disputes between a Member State and an investor from another Member State. Arbitral awards in such proceedings are invalid under Section 33 p. 2 of the Swedish Arbitration Act due to procedural ordre public (see “Investeringsavtalet” NJA 2022 p. 965). Against this background, Svea Court of Appeal declared the arbitral award invalid in its entirety, i.e. also in relation to the dispute between Poland and the Swiss investor.

The Republic of Poland appealed to the Supreme Court and was granted a leave for appeal regarding the part of the judgment concerning the Swiss investor.

The Supreme Court states in its judgment that an arbitral award should not be deemed invalid to a greater extent than is necessary. In this case, the Supreme Court concludes that the grounds for invalidity do not affect the Swiss investor, and that the part of the arbitral award that concerns him can be distinguished from the rest of the award. The Supreme Court therefore declares that the arbitral award is not invalid in the part concerning the relationship between Poland and that investor.

Wallin & Partners’ team consisted of partners Martin Wallin and André Mossberg.