SOCAR achieves arrest of Mubariz Mansimov's property in Turkey

SOCAR has appealed to the courts of Azerbaijan, Turkey, and Malta to recognize and implement the decisions adopted by International Arbitration Courts in favor of the State Oil Company of Azerbaijan (SOCAR) about the Palmali group of companies and its leader Mubariz Mansimov for non-fulfillment of obligations under various commercial agreements, Report informs, citing SOCAR.

The company also filed a lawsuit with the courts and authorities of these countries to arrest the property belonging to the Palmali Group of Companies and its head Mubariz Mansimov to enforce the decisions of the International Arbitration Courts. The Turkish court of the first instance has already ruled in favor of SOCAR's claim to seize the property, but the defendant's lawyers objected to this decision. The Istanbul Regional Court of Appeals dismissed the claims of the lawyers representing the Palmali Group of Companies. It upheld the court's decision of October 7, 2021, to arrest the defendants' property. The decision of the appellate court is final. In Azerbaijan and Malta, SOCAR's claims about confiscating the defendants' assets have already been met.

The Supreme Court of the Republic of Azerbaijan has already recognized the decision of the international arbitration courts by its decision dated September 8, 2021. Turkish and Maltese courts are currently considering the recognition of arbitral awards.

In 2018, SOCAR, SOCAR Trading SA, SOCAR Overseas Ltd, and Azerbaijan (ACG) Limited applied to three independent arbitration courts, including the International Court of Arbitration in London, the London Maritime Association, and the court functioning in line with the arbitration rules of United Nations Commission on International Trade Law (UNCITRAL), regarding the violation of commitments undertaken by Palmali group of companies under various commercial contracts. As a result, in 2020-2021, all three independent arbitration courts ruled in favor of SOCAR. The arbitral tribunals ruled that Mubariz Mansimov, the head of the Palmali group of companies and the group, must pay SOCAR more than $240 million in compensation while rejecting the defendant's counterclaims. The interest rates will continue to accrue until Palmali pays in full.