New Delhi: Russia appointed former Chief Justice of India (CJI) DY Chandrachud as its arbitrator in a multi-million-dollar investment treaty dispute with Ukraine’s state-owned bank, Oschadbank. The case will be heard by an international arbitration tribunal under the 1998 Russia-Ukraine Bilateral Investment Treaty (BIT). The dispute is linked to assets and banking operations allegedly lost by Oschadbank in regions affected by the Russia-Ukraine conflict.
Russia Selects Former CJI DY Chandrachud For International Arbitration
Former Chief Justice of India DY Chandrachud has been appointed by Russia as its arbitrator in an international investment treaty dispute initiated by Oschadbank, one of Ukraine’s largest state-owned banks.
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The appointment places Justice Chandrachud at the center of a significant legal battle involving claims worth hundreds of millions of dollars and issues arising from the ongoing Russia-Ukraine conflict.
What Is The Oschadbank-Russia Dispute About
The arbitration revolves around Oschadbank’s claim that it suffered substantial losses to its assets and business operations in the Ukrainian regions of:
- Donetsk
- Luhansk
- Kherson
- Zaporizhzhia
The bank alleges that these losses occurred as a result of Russian military actions, particularly following the full-scale invasion of Ukraine in 2022.
According to reports, the claim is valued at hundreds of millions of dollars, making it one of the significant investment treaty disputes arising from the ongoing conflict.
Tribunal Composition: Who Are The Other Arbitrators?
The dispute will be decided by a three-member arbitral tribunal.
- Russia has nominated former CJI DY Chandrachud as its arbitrator.
- Oschadbank has appointed Greek arbitrator and National University of Singapore professor Stavros Brekoulakis.
- The tribunal will be chaired by Costa Rican arbitrator and former trade minister Dyalá Jiménez, who was jointly selected by both parties.
Why Is DY Chandrachud Appointment Significant
The appointment is notable for several reasons.
- First, Justice Chandrachud served as the Chief Justice of India and is widely recognized internationally for his judicial work on constitutional law, technology, privacy rights, and commercial disputes.
- Second, international investment arbitration cases involving sovereign states often require highly respected legal experts with strong judicial credentials and global credibility.
Russia’s decision to appoint a former Indian Chief Justice highlights the growing international recognition of Indian legal expertise in complex cross-border disputes.
Chandrachud Had Earlier Declined Similar Russian Requests
Interestingly, this is not the first time Russia approached Justice Chandrachud. Reports indicate that Russia had previously invited him to serve as its arbitrator in treaty disputes involving German energy company Wintershall Dea and Ukrainian power transmission company Ukrenergo.
At that time, he reportedly declined those appointments and later stepped down from a separate appointing-authority role after disclosing communications related to the matter.
Legal Basis Of The Arbitration
The proceedings are being conducted under the 1998 Bilateral Investment Treaty (BIT) between Russia and Ukraine. Such treaties are designed to protect investments made by individuals and companies in foreign countries. They also provide a legal mechanism through which investors can seek compensation if they believe their investments have been unfairly affected by state actions.
Oschadbank argues that its investments and operations suffered significant damage because of developments linked to the conflict in Ukraine.
Who Is DY Chandrachud
Dr. Dhananjaya Yeshwant Chandrachud—better known as D.Y. Chandrachud—served as the 50th Chief Justice of India (CJI) from November 2022 to November 2024.
Early Life & Stellar Academics
Born on November 11, 1959, into a prominent legal family, his father, Y.V. Chandrachud, holds the record as India’s longest-serving Chief Justice. His academic trajectory set high standards early on:
- Undergraduate: Economics Honours from St. Stephen’s College, Delhi.
- Law Degree: LL.B. from Campus Law Centre, Delhi University.
- Higher Studies: Master’s (LL.M.) and Doctorate in Juridical Sciences (S.J.D.) from Harvard Law School.
The Legal Career
After a brief stint with the US firm Sullivan & Cromwell, Dr. Chandrachud returned to India to practice law at the Bombay High Court and the Supreme Court. In 1998, at just 38, he was designated a Senior Advocate and appointed as an Additional Solicitor General of India.
His judicial milestones include:
- Bombay High Court: Appointed as a judge in March 2000.
- Allahabad High Court: Served as Chief Justice from October 2013 to May 2016.
- Supreme Court of India: Elevated to the apex court in May 2016, ultimately becoming the CJI in November 2022.
Landmark Judgments & Legacy
Widely regarded as a progressive voice on the bench, Justice Chandrachud played a crucial role in several historic rulings:
- Right to Privacy (2017): Authored the majority opinion declaring privacy a fundamental right under Article 21, notably overruling a previous judgment authored by his own father.
- Decriminalization of Homosexuality (2018): Part of the bench that read down Section 377 of the IPC, emphasizing individual dignity and liberty.
- Gender Rights & Inclusivity: Authored key verdicts on granting Permanent Commission to women officers in the Indian Armed Forces and expanding reproductive rights under the MTP Act.
- Modernization: Prioritized digitizing courtrooms, championing live-streaming of Constitutional Bench proceedings, and making court decisions accessible in regional languages.
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