Turkey’s Akfel looks to sue state over nationalisation

BUCHAREST (ICIS)–On 21 September the US-based International Centre for Settlement of Investment Disputes (ICSID) published a note that Turkish natural gas importers Akfel Commodities and I-Systems Global had started legal proceedings against Turkey’s government in response to being nationalised.

The companies are seeking compensation from the Turkish government for placing them under the control of TMSF, a state-owned caretaker.

Akfel Commodities was nationalised at the beginning of December 2016, while related industrial group I-Systems was placed under state control 45 days later.

The case was filed and accepted by the ICSID, which is part of the World Bank group.

The first hearing is expected to be held in the coming months with no date currently set.

TMSF took full control of all Akfel Holding Turkey subsidiaries including Akfel Gaz, Enerco Enerji and Avrasya Gaz.

The three companies import a combined 5.25 billion cubic metres (bcm) of gas per year, the largest volume imported by a private business in Turkey.

The group was one of dozens of companies the government nationalised amid allegations of links to a religious organisation, which it accused of masterminding a failed coup in July 2016.

Akfel Group and I-Systems Global have denied any allegations.