Arbitration Stakes: Pramod Mittal's $400M Investment Treaty Showdown

Pramod Mittal, a prominent industrialist and brother of steel mogul Lakshmi Mittal, is at the center of a $400 million international arbitration claim filed against the government of Bosnia and Herzegovina. The verdict, anticipated within a month, will address allegations of treaty breaches related to the failed joint venture in the steel sector.

The case, conducted under the UNCITRAL framework in Vienna, involves Mittal's Global Steel Holdings Ltd and Bosnia's state-owned Koksno Hemijski Kombinat. Originally a collaboration that promised economic revitalization in northeastern Bosnia, the partnership deteriorated, leading to the erosion of Mittal's majority stake and management rights.

This landmark arbitration not only seeks to recover financial losses but also aims to improve investor security in politically unstable regions. Mittal's approach could serve as a template for future investment treaty claims by Indian firms operating in complex jurisdictions.

(With inputs from agencies.)