An arbitration tribunal of the International Chamber of Commerce (ICC) has issued its final award related to a dispute concerning the 2005 Turkcell Holding share purchase agreement between TeliaSonera and Cukurova. The tribunal ordered Cukurova to pay damages of USD 932 million plus interest to TeliaSonera. The arbitration tribunal earlier issued partial awards. The first award was issued in January 2007, stating that a binding share purchase agreement between TeliaSonera and Cukurova was concluded and ordering Cukurova to close the transaction. In a second partial award, issued in July 2009, the arbitration tribunal further stated that Cukurova must deliver all the remaining shares in Turkcell Holding to TeliaSonera for a cash consideration of USD 3.1 billion. Under the rules of the ICC, which Cukurova has agreed to be bound by, the parties undertake to carry out any award without delay and shall be deemed to have waived their right to any form of recourse. Cukurova has in no way acted or showed any interest in acting in accordance with its obligations under any of the earlier partial awards, according to TeliaSonera. TeliaSonera therefore turned to the arbitration tribunal and requested the tribunal to award damages. The arbitration tribunal of the ICC has now ordered Cukurova to pay damages to TeliaSonera in an amount of USD 932 million. In addition, the amount awarded shall bear interest from 30 June 2007 until full payment by Cukurova, at the highest rate paid by the Turkish State Banks for one year term deposit accounts in USD.
