Estonia wins international arbitration case over Seaplane Harbor

TALLINN - An international arbitration tribunal has ruled that Estonia acted lawfully in reclaiming possession of the Seaplane Harbor, a seafront property in Tallinn made up of adjoining concrete hangars for seaplanes, built before World War I, and dismissed a claim for damages by the company ELA USA Ltd.

ELA USA Ltd, owned by Aleksander Rotko, initiated the lawsuit in 2018, demanding over 200 million euros in compensation. The company argued that it should have been allowed to continue its timber processing and cargo transport business on the property, the Estonian Ministry of Justice and Digital Affairs said in a press release on Wednesday.

Following Estonia's restoration of independence in 1991, Russian military forces remained in the country for some time. During this period of uncertainty, documents were drawn up that transferred control of the Seaplane Harbor to companies linked to the Russian military. These companies later changed ownership multiple times, eventually ending up under the control of businesses associated with Aleksander Rotko.

The Estonian state regained its rights over the Seaplane Harbor in 2006 after a lengthy legal battle. In 2012, the harbor was reopened as a museum. Unwilling to accept the court's decision, Rotko moved to the United States and launched an international arbitration case against Estonia, alleging discrimination and persecution of investors.

The arbitration tribunal concluded that Estonia acted lawfully and that the port had been unlawfully transferred to private companies. The court affirmed that Estonia had not violated investor rights or engaged in discrimination and that ELA USA could not expect to retain rights that had been acquired unlawfully. The ruling brings an end to a dispute over the Seaplane Harbor that has lasted for more than 30 years. Estonia has successfully defended its interests, ensuring that the Seaplane Harbor remains an important historical site in Tallinn and a favorite leisure destination for both locals and visitors, the ministry said.

The Estonian state was represented in the international arbitration by the law firm Ellex Raidla.

"This summer marks 31 years since the withdrawal of Russian occupation forces from Estonia. It is beyond belief that we are still dealing with the consequences of the last-minute maneuvers of the occupation army and having to prove our rights. But rights must be defended, no matter how many decades it takes. My sincere gratitude to everyone who has fought to protect Estonia's ownership of the Seaplane Harbor over the years. We also thank the lawyers at Ellex Raidla for securing this court victory," Minister of Justice and Digital Affairs Liisa Pakosta said.