Ellex helps Estonia defeat a claim by US investor

Ellex helped Estonia to successfully defend itself against a claim brought by ELA USA Ltd (“ELA”) regarding its alleged investments in the Seaplane Harbour located in Tallinn, Estonia. The UNCITRAL tribunal rejected in full the over 200-million USD claim pursued by ELA since 2018. The Estonian state was represented in the international arbitration by Ellex in Estonia experts Anton Sigal, Toomas Vaher, Maria Teder, Marika Kütt and our former colleague Mailis Meier-Lutterodt. 

The Seaplane Harbour, or Lennusadam in Estonian, is a culturally significant port area in Estonia’s capital city. It is famous for its architecturally unique seaplane hangars, which were transformed into a museum in 2012. 

An international arbitration tribunal has ruled that Estonia acted lawfully in reclaiming possession of the Seaplane Harbour and has dismissed the damages claim filed by ELA USA Ltd, owned by Aleksander Rotko. The company argued that it should have been allowed to continue its timber processing and cargo transport business at the port. 

Following Estonia’s restoration of independence in 1991, Russian military forces remained in the country for some time. During this period of uncertainty, documents were drawn up that transferred control of the Seaplane Harbour to companies linked to the Russian military. These companies later changed ownership multiple times, eventually ending up under the control of businesses associated with Aleksander Rotko. 

The Estonian state regained its rights over the Seaplane Harbour in 2006 after a lengthy legal battle. In 2012, the harbour was reopened as a museum. Unwilling to accept the court’s decision, Aleksander Rotko moved to the United States and launched an international arbitration case against Estonia, alleging discrimination and persecution of investors. 

The arbitration tribunal concluded that Estonia acted lawfully and that the port had been unlawfully transferred to private companies. The court affirmed that Estonia had not violated investor rights or engaged in discrimination and that ELA could not expect to retain rights that had been acquired unlawfully. The ruling brings an end to a dispute over the Seaplane Harbour that has lasted for more than 30 years. Estonia has successfully defended its interests, ensuring that the Seaplane Harbour remains an important historical site in Tallinn and a favorite leisure destination for both locals and visitors. 

02.04 press release by Republic of Estonia Ministry of Justice and Digital Affairs.