Belaruskali Fails to Secure Transfer of Arbitration Proceedings Against Lithuania to a Neutral Country
Reform.news Editorial Team · 4 November 2026, 21:56
https://reform.news/en/belaruskali-fails-to-secure-transfer-of-arbitration-proceedings-against-lithuania-to-a-neutral-country/An arbitral tribunal has rejected Belaruskali’s request to move its arbitration case against Lithuania from Geneva to Dubai, Singapore or another neutral jurisdiction outside the European Union, BNS reports.
The Belarusian company is seeking $12.09 billion in compensation from Lithuania for the suspension of potash fertiliser transit.
Belaruskali filed a motion to change the seat of arbitration on July 6. The company argued that, following Switzerland’s introduction of sanctions restrictions in October 2025, Geneva could no longer be considered a neutral venue for hearing the dispute. According to the Belarusian side, Switzerland systematically applies EU sanctions, and its decisions could restrict the recognition and enforcement of arbitral awards in favour of Belarusian companies. Belaruskali also pointed to the risk of further tightening of sanctions.
Lithuania opposed the move, arguing that the seat of arbitration could be changed only in exceptional circumstances that made it impossible to continue proceedings at the original venue. Vilnius also considered the motion to have been filed too late and said that moving the proceedings at this stage would cause serious disruption.
“It is generally recognised that under Swiss law the seat of arbitration may be changed, but only where exceptional and significant circumstances arise that make it impossible to conduct the arbitration proceedings properly at the original venue, (…) if changed circumstances mean that retaining the current seat of arbitration would substantially impair the right of one or both parties to a fair hearing,” the arbitrators said.
“The arbitral tribunal concludes that there has been no change in circumstances requiring a change of the seat of arbitration in order to avoid prejudice to the parties, and particularly to Belaruskali’s procedural rights,” they added in a ruling dated September 16.
As no request was made to change the venue for the arbitration hearings, they will remain at the Peace Palace in The Hague.
The dispute is being considered under the rules of the United Nations Commission on International Trade Law (UNCITRAL). Belaruskali initiated investment arbitration proceedings after the Lithuanian government declared the freight transport agreement between Lietuvos geležinkeliai (Lithuanian Railways) and Belaruskali invalid in January 2022. Transit of potash fertilisers through Lithuania was suspended on February 1 that year.
In December 2024, Belaruskali filed a claim against Lithuania with the Permanent Court of Arbitration (PCA), seeking $12.09 billion in damages.