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Spain loses UK appeal over immunity in renewable energy rewards suit

Spain on Tuesday lost an appeal in its quote to claim resistance in a London court in a. multimillioneuro case over cuts to renewable resource incentives.

Two investors, Infrastructure Providers Luxembourg and. Energia Termosolar, took Spain to arbitration under the Energy. Charter Treaty 10 years ago for withdrawing subsidies for. renewable resource.

The World Bank's International Centre for Settlement of. Investment Disagreements (ICSID) granted Infrastructure Solutions. Luxembourg and Energia Termosolar 101 million euros ($ 109. million).

The investors' award was later on registered at London's High. Court, which in 2015 refused Spain's attempt to reverse the. award on the premises it had sovereign immunity.

Spain challenged that decision at the Court of Appeal at a. hearing in June, at which lawyers representing the financiers. stated in court filings that their 101 million euro award was one. of 25 such awards versus Spain, which have actually not been paid.

The Court of Appeal dismissed Spain's appeal, with Judge. Stephen Phillips saying in a composed ruling that states that. have signed up to the ICSID convention can not oppose the. registration of ICSID awards versus them on the premises of. state resistance.

Spain's appeal was heard at the same time as an appeal. brought by Zimbabwe in a separate case worth up to $125 million. worrying the supposed expropriation of land.

Zimbabwe's appeal versus the rejection of its claim to. state immunity was also dismissed, though the case was sent back. to the High Court to determine Zimbabwe's other premises for. reversing the award.

(source: Reuters)