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Fdi Moot Case 2024

This document provides the request for arbitration submitted by Astracommex Regional Satellite Communication Inc. against the Republic of Celestria. Astracommex operates a satellite constellation to provide global internet access and was attracted to investing in Celestria due to its digitalization agenda. However, a series of measures by Celestria have negatively impacted Astracommex's investment. Astracommex now initiates arbitration under the applicable investment treaty to resolve the dispute.
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0% found this document useful (0 votes)
357 views90 pages

Fdi Moot Case 2024

This document provides the request for arbitration submitted by Astracommex Regional Satellite Communication Inc. against the Republic of Celestria. Astracommex operates a satellite constellation to provide global internet access and was attracted to investing in Celestria due to its digitalization agenda. However, a series of measures by Celestria have negatively impacted Astracommex's investment. Astracommex now initiates arbitration under the applicable investment treaty to resolve the dispute.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FDI MOOT CASE 2024

FOREIGN DIRECT INVESTMENT


INTERNATIONAL ARBITRATION MOOT

Global Orals: 1-4 November 2024

The 2024 case was elaborated by the Case Committee consisting of Julia Jelenska, Shay Lakhter,
Yirong Sun and Jan Šlehofer (in alphabetical order), under the supervision of the FDI Moot’s
Review and Advisory Boards.

1
TABLE OF CONTENTS
REQUEST FOR ARBITRATION .................................................................................................. 4

Exhibit C-1: Press Release of 2 June 2015 from the Rural Development Agency
....................................................................................................................................................... 11

Exhibit C-2: RDF Application of 15 February 2016 .................................................................... 12

Exhibit C-3: The RDF Agreement ................................................................................................ 16

Exhibit C-4: News Article of 15 October 2016 from Cosmosis Gazette ...................................... 20

Exhibit C-5: National Environmental Policy Act of 1 April 2020 ............................................... 21

Exhibit C-6: Press Report of 2 January 2021 on AS100 Collision ............................................... 23

Exhibit C-7: Press Report of 5 January 2021 on Solar Radiation Storm ...................................... 24

Exhibit C-8: DoD Decision of 5 January 2021 to Investigate AS100 Collision and Suspend
Operation....................................................................................................................................... 25

Exhibit C-9: DoD Order of 1 March 2021 to Adjust Orbits of 400 km Satellites and Continue to
Suspend Operation ........................................................................................................................ 27

Exhibit C-10: FTA of 2 December 2003 ...................................................................................... 29

RESPONSE TO THE REQUEST FOR ARBITRATION ........................................................... 30

Exhibit R-1: Declaration of 10 October 2022 Concerning the Agreement on Reciprocal Promotion
and Protection of Investments Between the Kingdom of Nebuland and the Republic of Celestria
....................................................................................................................................................... 35

Exhibit R-2: News Article of 1 April 2020 from the Cosmosis Post............................................ 36

Exhibit R-3: Letter of 15 October 2020 from Astracommex Regional to NFA ........................... 38

Exhibit R-4: Celestrian Space Agency’s Study on Astra Satellites’ Impact on Astronomy ........ 39

Exhibit R-5: Scientists’ Call to Halt Satellite Light Pollution ...................................................... 41

Exhibit R-6: Study on Atmospheric Effects of Spacecraft Reentries ........................................... 43

PROCEDURAL ORDER NO. 1................................................................................................... 45

2
PROCEDURAL ORDER NO. 2 (Document Production) ........................................................... 52

REQUEST FOR SECURITY FOR COSTS ................................................................................. 56

Exhibit R-7: Letter from the Secretary-General to the Parties ..................................................... 58

Exhibit R-8: Capital Call Notice to Marcial Ventures Ltd ........................................................... 59

Exhibit R-9: Capital Call Notice to Platonial Investments ........................................................... 60

Exhibit R-10: Appendix 3.1 of the Expert Report of Mr. Damus................................................. 61

RESPONSE TO THE REQUEST FOR SECURITY FOR COSTS ............................................. 62

Exhibit C-10: Bylaws of Astracommex Global Satellite Communication Inc. ............................ 64

Exhibit C-11: Nebuland’s Code of Civil Procedure ..................................................................... 65

NOTICE OF NON-COMPLIANCE WITH DOCUMENT PRODUCTION .............................. 66

Exhibit C-12: Collision Incident Report ....................................................................................... 69

RESPONSE TO THE NOTICE OF NON-COMPLIANCE WITH DOCUMENT PRODUCTION


....................................................................................................................................................... 71

PROCEDURAL ORDER NO. 3................................................................................................... 72

STATEMENT OF UNCONTESTED FACTS ............................................................................. 75

AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENTS


BETWEEN THE KINGDOM OF NEBULAND AND THE REPUBLIC OF CELESTRIA ...... 85

3
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES

In the arbitration proceeding between

Astracommex Regional Satellite Communication Inc.


(Claimant)
and
The Republic of Celestria
(Respondent)

REQUEST FOR ARBITRATION

9 September 2022

For the Claimant:


Ms. Astrid Stellaris
AstroJuris Arbitration
3 Saturn St., 48798 Stelaria
Nebuland

4
I. INTRODUCTION

1. Astracommex Regional Satellite Communications Inc. hereby submits a request to initiate


arbitration (the “Request”) in a dispute with the Republic of Celestria (“Celestria”) in
accordance with Article 36 of the Convention on the Settlement of Investment Disputes
between States and Nationals of Other States, which entered into force on 14 October 1966
5 (the “ICSID Convention”), Rules 1 and 2 of the 2022 ICSID Institution Rules, and Article 10
of the Agreement on Reciprocal Promotion and Protection of Investments between the
Kingdom of Nebuland and the Republic of Celestria, which entered into force on 1 February
2021 (the “BIT”).

2. The Claimant confirms that it has obtained all necessary internal authorizations to file the
10 Request.

II. THE PARTIES

3. The Claimant is Astracommex Regional Communications Inc. (“Astracommex Regional” or


the “Claimant”), a company organized under the laws of the Kingdom of Nebuland
(“Nebuland”) with its principal place of business in Stelaria, Nebuland. Astracommex
15 Regional operates as a wholly-owned subsidiary with all of its shares held by its parent
company, Astracommex Global Satellite Communication Inc. (“Astracommex Global”),
which is also organized under the laws of Nebuland.
1
4. Astracommex Regional is represented in the arbitration by AstroJuris Arbitration.
Correspondence in this matter should be addressed to:
20 Ms. Astrid Stellaris
AstroJuris Arbitration
3 Saturn St., 48798 Stelaria
Nebuland
Tel: 019679876
25 Email: astellaris@astrojuris.glob

5. The Respondent is Celestria, an ICSID member State since 20 July 1986. To the best of the
Claimant’s knowledge, the Respondent is represented in the arbitration by:

30

1
The power of attorney is intentionally omitted.

5
Dr. Janis Pletnik
CosmoLex
5 lunar bvd., 98479 Starvalis
Celestria
35 Tel: 098792764
Email: jpletnik@cosmos.net

III. SUMMARY OF THE DISPUTE

6. The Claimant, along with its parent company, focuses on non-terrestrial communication
technologies. It delivers affordable internet access globally and especially targets unserved and
40 underserved populations in rural and remote areas. Leveraging cutting-edge
telecommunications technology, Astracommex Global has pioneered the revolutionary
concept of a low-Earth-orbit (“LEO”) satellite mega-constellation. This concept involves
deploying a vast network of 5,000 satellites across various altitudes - 400, 450, 500, and 600
kilometers above Earth - to establish a high-speed, high-quality, and cost-effective non-
45 terrestrial communication network. A standout feature of this network is the utilization of inter-
satellite optical links, enhancing speed and efficiency.

7. The Claimant was attracted to Celestria primarily by its digitalization agenda. The Respondent
has consistently affirmed its dedication to advancing digitalization projects in rural areas since
2010. An example is the flagship digital health project which the Respondent promoted in 2015,
50 creating a promising market for internet service providers like the Claimant.2

8. In 2016, the Respondent inaugurated the Rural Digitalization Fund (“RDF”) with a substantial
grant of USD 1 billion, reiterating its commitment to narrowing the gap between rural and
urban areas by ensuring universal access to internet communication services across its territory.
The Respondent actively encouraged foreign investors, such as the Claimant, to invest in its
55 territory. To that end, the Respondent invited bids from both foreign and domestic internet
service providers for the allocation of the RDF funds and the necessary radio frequencies.

9. On 15 February 2016, the Claimant submitted its application in the auction organized by the
Respondent, presenting a LEO satellite mega-constellation (named the “Astra System”).3 The
Claimant won the bid in August of thintoe same year.

2
Exhibit C-1, Press Release from the Rural Development Agency, 2 June 2015.
3
Exhibit C-2, RDF Application, 1 February 2016.

6
60 10. The Respondent’s National Frequency Agency (“NFA”) and Rural Development Agency
(“RDA”) subsequently entered into a contract with the Claimant on 1 October 2016 (the “RDF
Agreement”), providing the Claimant with USD 500 million and allocating the necessary Ka-
band frequencies for a ten-year period.4 Since then, the Claimant has been conscientiously
developing and installing the Astra satellites as well as the ground stations on the territory of
65 the Respondent, in order to deliver the promised quality of internet services.

11. However, in January 2020, following the change in the Respondent’s Government, the
Respondent began to slowly backtrack on its commitments, taking a multitude of measures
that ultimately stripped the Claimant of its investment.

12. As a first step, the Respondent enacted the National Environmental Protection Act (the
70 “NEPA”).5 The NEPA, despite stating that it would not apply retroactively, was interpreted
broadly in practice in terms of what constitutes “future agency actions.” This interpretation
opened the door to a series of wide-ranging measures against the Claimant that caused the
Claimant’s eventual loss of all of its operations in relation to the territory of Celestria.

13. On 1 June 2020, the Celestrian Space Agency established radio silence zones which de facto
75 reduced the communication reach of the Astra System from covering 100% of Celestria’s
territory to covering only 40%. Even though the Celestrian Space Agency relied on scant
scientific evidence to make its decision, the Claimant cooperated in good faith and offered new
plans to mitigate any potential impact on astronomy. The new plan obliged the Claimant to
apply for a new Ku-band spectrum to operate. The Claimant was optimistic that the plan would
80 be simple to execute because Article 6 of the RDF Agreement allows for the modification of
support from the NFA and RDA under specific conditions.6

14. However, during the NFA’s processing of the Claimant’s request for the new Ku-band
frequencies, the NFA requested the Claimant to submit supplementary materials to facilitate
an environmental impact assessment regarding the reentry of the satellites. The Claimant
85 refused to submit further documents and such refusal resulted in a long silence from the NFA.
The application was kept pending and was finally rejected on 15 December 2020.

4
Exhibit C-3, RDF Agreement, 1 October 2016.
5
Exhibit C-5, National Environmental Protection Act, 1 April 2020.
6
Exhibit C-3, RDF Agreement, 1 October 2016.

7
15. On 1 January 2021, an unfortunate collision happened between one of the Claimant’s satellites,
AS100, and a cubesat owned by Valinor, a private company, and sponsored by the
Respondent’s Department of Defense (“DoD”). Based on the Claimant’s engineers’ post-
90 collision assessment of its proprietary software, the collision was due to an electronic
malfunction induced by an unusual solar radiation storm.7

16. On 5 January 2021, the DoD initiated an investigation and suspended the Claimant’s operations
on Celestria’s territory.8

17. On 1 March 2021, the DoD abruptly ordered the Claimant to reposition of all of its 400km
95 altitude satellites to new orbits below 350km. To add salt to the injury, the DoD also ordered
a continuing suspension of the Claimant’s operation on the territory of Celestria until the
reposition was completed.9

18. The orbits and plans of all the 5,000 satellites in the current Astra System were deliberately
and carefully engineered. While the Claimant possesses the technical capacities to reposition
100 of the 400km satellites, such action will cost the Claimant USD 1 billion. In addition, the
Claimant will need an authorization from the NFA to use the new spectrums due to the adjusted
configuration. The Claimant recalls, however, that the NFA rejected its request for Ku-band
frequencies on 15 December 2020. Chances of the NFA accepting another request are slim.

19. Moreover, the Claimant’s 400km satellites were launched from the Kingdom of Cosmosis
105 (“Cosmosis”) before the diplomatic relationship between the Respondent and Cosmosis broke
down following the climate migration crisis.10 According to the Outer Space Treaty of 1967
and the Registration Convention of 1974, Cosmosis has quasi-territorial jurisdiction over the
400km satellites. The Respondent thus has no authority to enforce such an order.

20. Due to the series of the Respondent’s measures, the Claimant’s business activities in Celestria
110 have ceased entirely. Although the Claimant retains ownership of its assets, including the
ground stations within the Respondent’s jurisdiction and the Astra satellites in outer space, it
has been rendered incapable of conducting any business activities within the Respondent’s

7
Exhibits C-6, Press Report on AS100 Collision, 2 January 2021; Exhibit C-7, Press Report on Solar Radiation
Storm, 5 January 2021.
8
Exhibit C-8, DoD Decision to Investigate AS100 Collision and Suspend Operation, 5 January 2021.
9
Exhibit C-9, DoD Order to Adjust Orbits of 100 Satellites and Continue to Suspend Operation, 1 March 2021.
10
Exhibit C-4, News Article from Cosmosis Gazette, 15 October 2016.

8
territory. The multi-agency actions amount to a comprehensive and permanent prohibition on
the Claimant’s provision of internet services within the Respondent’s territory.

115 21. Consequently, the Respondent’s measures effectively deprived the Claimant of the enjoyment
and operations of its investment, and clearly represent a breach of Article VII of the BIT.

IV. JURISDICTION OF THE ARBITRAL TRIBUNAL

A. Under the ICSID Convention

22. Article 25(1) of the ICSID Convention provides that:


120 The jurisdiction of the Centre shall extend to any legal dispute arising directly out of an
investment, between a Contracting State (or any constituent subdivision or agency of a
Contracting State designated to the Centre by that State) and a national of another
Contracting State, which the parties to the dispute consent in writing to submit to the Centre.
When the parties have given their consent, no party may withdraw its consent unilaterally.
125
23. The Claimant satisfies the requirements of Article 25(1) of the ICSID Convention.
[the remaining arguments on jurisdiction under the ICSID Convention are intentionally omitted]

B. Under the BIT

24. The Claimant equally meets the requirements of the BIT for the initiation of an ICSID
130 arbitration. The Claimant recalls that prior to the entry into force of the BIT, Celestria and
Nebuland were Contracting States to a Free Trade Agreement (the “FTA”) along with
Cosmosis. The FTA was in force between 2003 and 2017. Following the termination of the
FTA in 2017, 11 Celestria and Nebuland negotiated, signed and ratified the BIT.

25. Article 2 of the BIT does not limit its temporal application. Article 2 is drafted in broad terms
135 and provides that “[t]his Agreement shall apply to legal disputes in relation to investments that
existed at the time of entry into force as well as to investments made or acquired thereafter.”
Article 2 thus provides that the BIT applies to all legal disputes, as long as they relate to an
investment.

[the remaining arguments on jurisdiction under the BIT are intentionally omitted]

11
Exhibit C-10, Free Trade Agreement between the Governments of Nebuland, Celestria and Cosmosis, 2
December 2003.

9
140 V. CONSTITUTION OF THE TRIBUNAL

26. Pursuant to Article 11(1) of the BIT, the Tribunal is to be constituted in accordance with the
method provided in Article 37(2)(b) of the ICSID Convention.

27. In accordance with Rule 16 of the ICSID Arbitration Rules, the Claimant appoints Dr. Nika
Havendale, a national of Gerheimburg, as its arbitrator.

145 28. Dr. Havendale’s contact information is the following:


Dr. Nika Havendale
3 Wolkenstrasse
90432 Silberbach
Gerheimburg
150 Email: nhavendale@havendale.com

VI. REQUEST FOR RELIEF

29. In light of the foregoing, Astracommex Regional requests that the Tribunal:

i. DECLARE that the dispute is within the competence of the Centre and the jurisdiction
of the Tribunal;
155 ii. DECLARE that Celestria has violated Article VII of the BIT;
iii. ORDER Celestria to pay to the Claimant damages in an amount that will be determined
later in the proceeding but in any event not inferior to USD 1,000,000,000; and
iv. ORDER Celestria to bear the entire costs of the proceeding including the Claimant’s
representation fees.
160 30. Astracommex Regional respectfully requests the Secretary-General to register this Request for
Arbitration against Celestria pursuant to Article 36(3) of the ICSID Convention.

For the Claimant,

165
AstroJuris Arbitration

10
C-1

Exhibit C-1: Press Release of 2 June 201 5 from the Rural Developmen t Agency

CONTACT:
170 Mr. Presing Attchi
Rural Development
Agency
3 tree road
98479 Starvalis
175 Celestria

PRESS RELEASE

Celestria’s Digital Health Project: Bridging Islands, Building Prosperity and a Leap into
180 the Future of Healthcare
Skydocker Administration Spearheads Innovative Project to Transform Celestria’s Health Sector
2 June 2015
The Skydocker administration’s groundbreaking Digital Health Project has recently received
fundings from the Regional Development Bank. A strong connectivity infrastructure is critical as
185 the Skydocker administration embarks on this Project and other digitalization endeavors. To this
end, the administration is dedicated to bolstering the telecommunication sector. The Rural
Development Agency, playing a pivotal role in the digitalization agenda, is vigorously pursuing
dependable telecommunications solutions to fulfill this ambitious vision.
Celestria is an island nation with 60% of its population living in isolated areas, and thus faces
190 unique geographical challenges that make this Project urgent.
The Digital Health Project introduces a comprehensive digital health information system to replace
the legacy system that has been causing frictions in nationwide healthcare delivery. The new
system aims to securely stores and shares patient medical records via an advanced cloud computing
infrastructure. The goal is to streamline information flow among Celestria’s healthcare providers,
195 ensuring timely medical interventions and access to specialized services, especially in remote areas.
The system will also employ advanced encryption methods to protect patient data.
The Project not only can tackle the digital divide in healthcare but also can create economic
opportunities for private sectors. By integrating medical records - with patient consent or through
anonymization techniques - the project opens avenues for sharing data with pharmaceutical
200 companies and medical device manufacturers for future research and development.

11
C-2

Exhibit C-2: RD F Application of 1 5 February 201 6

205
To:

Rural Development Agency


3 tree road
210 98479 Starvalis
Celestria

National Frequency Agency


3 hertz boulevard
215 98479 Starvalis
Celestria

15 February 2016
220

Re: Application of Astracommex Regional Satellite Communication Inc. to the Rural Digital
Fund

225 I. OVERVIEW
Astracommex Regional Satellite Communication Inc. (“Astracommex Regional”) operates as a
wholly-owned subsidiary, with all of its shares held by its parent company, Astracommex Global
Satellite Communication Inc. (“Astracommex Global”). Together, Astracommex Regional and
Astracommex Global are collectively known as the Astracommex Group.

230 The Astracommex Group specializes in delivering high-capacity, low-latency broadband


communication services to unserved and underserved consumers and businesses in rural and
remote areas globally through the deployment of low-Earth-orbit (“LEO”) constellation (the
“Astra System”). The Astra System will comprise 5000 satellites at altitudes of 400, 450, 500 and
600 km. Astracommex Regional’s constellation plans to use frequencies in the Ka-band to provide
235 Fixed-Satellite Services (“FSS”) and Mobile-Satellite Services (“MSS”) to customers.

This innovative service is specifically suitable to address the distinct geographic challenges of
Celestria. It focuses on delivering broadband to underserved rural areas, offering a more cost-
effective alternative to terrestrial telecommunication networks. Moreover, it ensures heightened
reliability and resilience against potential disruptions caused by events such as tsunamis, seabed
240 earthquakes, which could otherwise sever internet connectivity throughout Celestria.

12
The Astracommex Group harnesses robust innovation capabilities rooted in its expertise in space
communication. With ownership of multiple patents, including those for small, cost-effective
customer terminal antenna technology and an on-board autonomous collision avoidance system,
the Astracommex Group is at the forefront of technological advancement.

245 Demonstrating its commitment, the Astracommex Group has pledged a minimum investment of
USD 3 billion to bolster the Astra System. Progressing steadily, the group aims to deliver
affordable and dependable customer services.

In April 2014, the Astracommex Group got authorization from Nebuland’s Bureau of Space
Commerce12 to launch and operate TestSat1 and TestSat2 for testing and demonstration purposes.
250 During test rounds, the satellites successfully communicated with Telemetry, Tracking &
Command earth stations in the Astral Region, Asia, Africa, Australia, and North America, South
America and Europe as well as with customer terminal units and a single gateway earth station
located in Nebuland. The test has fully validated the design of the Astra System and its capability
for future commercial deployment. The Astracommex Group received authorization from
255 Nebuland to operate in Ka-band on Nebuland territory in August 2014.

The Astracommex Group maintains a forward-thinking approach. In October 2014, the Group
announced a strategic agreement with the Cosmosis Space Agency to secure 30 Cosmo-9 launch
vehicles further fortifying its deployment schedule (see Appendix A). Notably, each Cosmo-9
launch vehicle possesses the capacity to deploy 50 Astra satellites.

260 The Astracommex Group is actively developing the Astra System at its state-of-the-art, 300,000-
square-foot facility in Nebuland, serving as the primary prototype and qualification facility. The
project involves a dedicated team of over 700 employees, and the workforce is rapidly expanding.

II. SYSTEM ARCHITECTURE DESCRIPTION

265 A. Space Segment

• Laser Transmitters
Each satellite is equipped with transmitters that enable direct laser transmissions with adjacent
satellites. The primary function of laser transmitters is to establish inter-satellite links. These links
allow satellites to communicate directly with each other in orbit, which is crucial for minimizing
270 network latency. 13 The orbit and relative position of Astra satellites is carefully engineered to
ensure reliable data flow among the high-velocity satellites. Notably, the laser wavelength utilized

12
The Bureau of Space Commerce is part of the Department of Commerce in Nebuland that is responsible for the
authorization of commercial space activities.
13
In the vacuum of space, light, including laser transmissions, travels faster than it does through fiber-optic cables
on Earth. This allows for more rapid transmission of data from one satellite to another.

13
by the Astra satellites is distinct from the wavelengths observable by optical telescopes, thereby
mitigating the risk of interference with astronomical observations.

• Autonomous Collision Avoidance System


275 Each Astra satellite is equipped with our patented autonomous collision avoidance system to avoid
collision in orbit with another satellite or other space debris. This system harnesses tracking data
from both onboard sensors and data shared via the Space Surveillance Network (“SSN”). The SSN
is organized by the Department of Defense of the Kingdom of Cosmosis, and is renowned for its
comprehensive coverage in tracking objects in orbit around the Earth.

280 The collision avoidance system operates in real-time, constantly assessing the likelihood of
collisions and making split-second decisions to alter the satellite’s course when necessary. Every
Astra satellite is equipped with cutting-edge ion thrusters powered by krypton. These thrusters
allow Astra satellites to change their orbits when the onboard computer determines that a maneuver
is necessary to avoid a potential collision.

285 The Astracommex Group retains the capability to remotely update the software of the collision
avoidance system, ensuring continuous improvement and adaptability to the new challenges in
space traffic management.

B. Ground Segment

The Astra System plans to have around 50 to 100 gateways14 on the territory of Celestria for its
290 service provision to the Celestrian people.

III. POST-MISSION DISPOSAL

We believe the best option for post-mission disposal for satellites (as well as deorbiting
dysfunctional satellites) is atmospheric reentry. Astra satellites, composed of various materials
including aluminum alloys, are fully demisable.15 This approach to atmospheric reentry with fully-
295 demisable satellites is preferred over leaving satellites in orbit or constructing them from materials
that could survive reentry, posing a risk of human casualties.

[the rest technical details are intentionally omitted] Yours Sincerely,

Jeffrey Myskin

14
A gateway is a special ground station that can connects the satellite communication to the Internet (and/or public
telephone networks).
15
The term “fully demisable” in the context of satellites and spacecraft refers to the capability of the entire satellite
or spacecraft to completely disintegrate and burn up upon re-entry into the Earth’s atmosphere.

14
300 APPENDIX A: LAUNCH SCHEDULE

Time Number of Status Milestone Network Capacity (estimated)


Satellites Deployment
(cumulative) Requirement
Until 1 Feb 100 deployed N/A N/A
2016
1 Oct 2016 200 Launches N/A N/A
(targeted RDF booked with
launch date – Cosmosis
if winning the
bid)
1 Oct 2017 500 Launches 10% (500 N/A
(year 1) booked with satellites)
Cosmosis
1 Oct 2018 1500 Launches 30% (1500 Network goes live and the internet
(year 2) booked with satellites) service starts to be available to
Cosmosis customers. Customers may anticipate
to experience network delays.
1 Oct 2019 2500 TBD 50% (2500 Service available to customers (with
(year 3) satellites) 50% of optimal service quality). The
quality of service is anticipated to be
comparable to, and in some cases,
exceed that of most terrestrial
networks.
1 Oct 2020 3500 TBD 70% (3500 Service available to customers (with
(year 4) satellites) 70% of the optimal service quality)
1 Oct 2021 5000 TBD 100% (5000 Service available to customers (with
(year 5) satellites) 100% of the optimal service quality)

* To become operational, the Astra System requires a minimum deployment of 1500 satellites in its
designated orbits. However, until the number of satellites reaches 2500, customers can expect suboptimal
305 internet quality. The Astra System will activate inter-satellite links when the number of satellites reaches
2500 to better reduce latency.

15
C-3
C-4

Cosmosis Gazette
15 October 2016 your news, today, everyday since 1987

Cosmosis Takes a Stand: Prime Minister Condemns


420 Celestria’s Failure to Protect Citizens from Climate Crisis
Exhibit C-4: News Article of 15 October 2016 from Co smosis Ga zette

Today is a defining moment that could reshape regional relations.


The Prime Minister of Cosmosis, Nigel Palpatinous, delivered a stark rebuke today of Celestria’s
failure in handling climate change issues. He criticized the neighboring nation for its apparent
425 inability to adequately protect its population from escalating threats posed by climate change. This,
he suggested, not only compromises Celestria’s own stability but also poses a substantial setback
to the collective global effort to address the climate crisis.
Since the summer of 2013, Cosmosis, the only neighboring state that is connected to Celestria by
land, has emerged as a major destination for Celestrians displaced by climate change. The once
430 tranquil border area of Cosmosis is now grappling with safety concerns and resource strains caused
by homeless migrants. The local government’s efforts, including an injection of over 100,000 USD
dollars for additional police force and humanitarian assistance, have fallen short of addressing the
escalating situation. A local villager, expressing their distress, said,
“Why haven’t I left this village? I am poor! I am trapped here with these folks. And why should I
435 leave? It makes absolutely no sense for Cosmosis taxpayers to pay for Celestria’s failure!”
The situation reached a critical point following a
devastating tropical storm in the summer of 2016,
leading to an unprecedented surge in refugee
numbers. In a decisive move, Prime Minister
440 Palpatinous announced Cosmosis’ first-ever
climate migration policy, denying asylum to
Celestrian residents displaced by natural disasters
and climate change effects.
This publication echoes the sentiment that the
445 Celestrian government must reassess its priorities
and focus on proactive measures to protect its citizens against the changing climate.
As the debate on climate responsibility and regional cooperation unfolds, the Cosmosis Gazette
will continue to provide comprehensive coverage, fostering dialogue and awareness on this critical
issue.
450
cosmosisgazette.com

20
C-5
C-4

Exhibit C-5: National E nviron mental Policy Act of 1 April 2020

455

Republic of Celestria

NATIONAL ENVIRONMENTAL POLICY ACT OF 1 APRIL 2020

460
Recognizing the specific need of the people of Celestria for an effective and progressive response
to the urgent threat of climate change on the basis of the best available scientific knowledge,

Desiring to establish a national policy which will encourage productive and enjoyable harmony
465 between human and human environment,

Desiring to promote efforts which will prevent or eliminate damage to the environment and
biosphere and stimulate the health and welfare of humankind,

470 Acknowledging the profound impact of human activity on the interrelations of all components of
the natural environment, particularly the profound influences of population growth, high-density
urbanization, industrial expansion, resource exploitation, and new expanding technological
advances,
Recognizing further the critical importance of restoring and maintaining environmental quality to
475 the overall welfare and development of man.

Article I Definitions
Human environment is not limited to those which are subject to Celestria’s national jurisdiction,
and for greater certainty, human environment includes the outer space environment.
480 Environmental Impact Assessment means the process used to predict the environmental
consequences (positive or negative) of a plan, policy, program or project prior to moving forward
with the proposed action.

Article II Scope of Application


485 This Act mandates all governmental agencies to use all practicable means and measures, including
financial and technical assistance, in a manner calculated to foster and promote the general welfare,

21
to create and maintain conditions under which man and nature can exist in productive harmony,
and fulfill the social, economic, and other requirements of present and future generations of
Celestrians.
490
Article III Environmental Impact Assessment
[intentionally omitted]

Article IV Due Process


495 This Act does not apply retroactively. It shall guide future actions of governmental agencies,
particularly when authorizing new activities.

Article V Agency Decision Making


Agencies must take full account of environmental impact assessments as per Article III when
500 determining whether the planned activity may proceed. A decision to authorize the planned activity
under the jurisdiction of the agency shall only be made when, taking into account mitigation or
management measures, the agency has determined that it has made all reasonable efforts to ensure
that the activity can be conducted in a manner consistent with the prevention of threats of severe
or irreversible damage on the human environment.
505 When it comes to making decisions that involve multiple agencies, a coordinated approach to
decision-making shall be employed.
In line with Principle 15 of the Rio Declaration on Environment and Development, lack of full
scientific certainty shall not prevent an agency from implementing preventive measures against
environmental degradation.
510
Article VI Forms of Agency Decision
Each decision rendered by an agency pursuant to this Act must be documented in written form and
made available to the public in a timely manner.

515 Article VII Right to Appeal


Affected parties to an agency’s decision have the right to appeal the decision in accordance with
Celestria Administrative Law.

[the rest of the NEPA is intentionally omitted]


520

22
C-6

Exhibit C-6: Press Report of 2 Jan uary 2021 on A S10 0 Co llision

Cosmo News
2 January 2021

Breaking: Unfortunate Collision, the Wandering AS100

525
On 1 January 2021, one of Astracommex’s satellites, AS100 collided with a cubesat operated by
Valinor.
The Valinor cubesat involved is said to be a component of a trial missile defense system that
Valinor developed in partnership with the Department of Defense of Celestria. The payload of the
530 Valinor cubesat includes the state-of-art Hypersonic and Ballistic Tracking Space Sensor. It is
designed to identify and track hypersonic and ballistic missile threats and provide critical data to
the Department of Defense’s Missile Defense System and the warfighter.
The Celestrian Department of Defense is believed to have launched this system as a covert
operation in response to diplomatic tensions with Cosmosis in 2017. According to insiders at the
535 Department of Defense, this strategic move was intended to strengthen Celestria’s readiness for
any potential future conflicts arising from regional tensions. This was especially important given
Cosmosis’ regional dominance in aerospace, space technology, and missile capabilities.
Astracommex believes that the collision was not their fault. According to the company’s CEO,
Jeffrey Myskin, “there was no close-proximity alert from the Space Surveillance Network, nor
540 were there any public records of a cubesat operating in the same orbit.”
He also urged the public not to lose faith in their collision avoidance system, claiming that “the
last data recorded in our system prior to the collision indicates that high energy protons from the
unusual solar radiation storm affected the onboard computation. Our patent products contain no
inherent flaws but were affected by the unusually extreme solar radiation. Our software
545 engineering team has been working right after the collision to update the onboard software for all
the existing and upcoming satellites to protect them from interference by extreme space weather
events.” Our Celestria Space Agency source confirmed observing a “unusually strong” solar flare
at the time of collision.
The CEO also urged Valinor to coordinate with Astracommex in post-collision self-assessment
550 and future operations. He emphasized that proactive communication from Valinor could have
prevented the incident and the collision.
Valinor has so far not responded to a request for comment on the incident.

23
C-7

Exhibit C-7: Press Report of 5 Jan uary 2021 on So lar Radiation Storm

PLANETARY NEWS
555 TRENDING WEATHER ASTROGEOLOGY ASTROBIOLOGY
Home > Tag > Trending

Solar Radiation Storm Four Times Earth’s Size Recorded by


Amateur Astronomer in Celestria
By Lucy Franks 5 Jan 2021 14:35 CET16
560 An amateur astronomer and Celestrian educational YouTuber named Rick Carrington captured a
solar storm emerging away from the Sun where “four entire Earths” could fit in.
Solar radiation storms happen when a massive magnetic explosion, typically triggering a coronal
mass ejection and a related solar flare, speeds up charged particles in the sun’s atmosphere to
extremely high speeds. The key particles in these events are protons, which can reach speeds close
565 to that of light. These high-energy protons, when they hit satellites or humans in space, can deeply
penetrate the impacted objects, potentially harming electronic components or biological DNA.
AS100 collision was said to be caused by the solar storm observed this week.
In the past few months, there’s been a rise in solar activity on the sun, the sole star of our solar
system, as part of the ongoing Solar Cycle. While solar storms are a regular occurrence, their
570 observation and recording hold great scientific value.
Solar Storm Video
Carrington detected the unusual space storm on a video
posted on Instagram on 1 January 2021. In the caption, the
amateur astronomer stated he was not expecting to capture
575 the event, which happened after he pointed out his telescope
on 30 December 2020. In the video, it can be noticed the
Sun emitted a curve-shaped plasma out of its surface.
The video has gained thousands of views and even caught
the attention of Celestrian Space Agency.
580 Rick Carrington is reportedly well recognized for uploading
videos in matters relating to astronomy, astrophotography,
telescopes and cameras.

16
Note: CET refers to “Celestrian Eastern Time.”

24
Office of the General Counsel C-8
78 Armory Road,98698 Starvalis
Exhibit C-8: DoD Decision of 5 January 2021 to Investigate AS100 Collisio n and Suspend Operation

585

590 To the attention of:


Astracommex Regional Satellite Communication Inc.
115 Neptune Street
48799 Stelaria
Nebuland
595
5 January 2021

Subject: Investigation and Operational Restrictions Following AS100 Collision


600
Dear Mr. Myskin,

In accordance with the powers conferred by the Celestrian National Security Act, the
Department of Defense of Celestria has jurisdiction over space activities involving essential
605 security interests. The Department of Defense initiates today an investigation into the recent
collision involving your satellite, AS100, part of the Astra System, and a cubesat operated by
Valinor, a private Celestrian space company in partnership with Celestria’s Department of Defense.
This incident raises serious concerns regarding the safety of the autonomous collision
avoidance system employed in your satellites. Considering the significant presence of Department
610 of Defense assets in low-Earth orbits - a region where many of your satellites operate or are
proposed to operate - we hereby issue the following directives:
i. Investigation: The Department of Defense will initiate an investigation to ascertain the
circumstances surrounding the collision, including potential lapses in communication,
and the validity of the autonomous collision avoidance system.
615 ii. Suspension of Operations: Until the investigation is concluded, Astracommex is
directed to suspend all satellite communications within the territory of Celestria due to
safety concerns.
Immediate compliance with these directives is mandatory. Non-compliance will lead to
further legal actions, including penalties and potential criminal charges.
620 Astracommex may appeal this decision within 30 days of receipt of this notice. Appeals
should be submitted directly to the Department of Defense.

25
The Department of Defense takes these measures to ensure the safety and integrity of
Celestria’s space operations and essential security interests. We anticipate your full cooperation in
this matter.
625
Yours sincerely,

Sam Davis
630

26
Office of the General Counsel C-9
78 Armory Road,98698 Starvalis
Exhibit C-9: DoD Order of 1 March 2021 to Adju st Orbits of 400 km Satellites and Co ntin ue to Suspend Operatio n

635

To the attention of:


Astracommex Regional Satellite Communication Inc.
115 Neptune Street
640 48799 Stelaria
Nebuland

1 March 2021

645 Subject: Required Actions After AS100 Collision Incident

Dear Mr. Myskin,

Based on the Department of Defense’s investigation of the AS100 satellite collision, we


650 have identified both software and hardware deficiencies in the collision avoidance system of the
Astra satellites.
Regarding the software, the algorithm Astracommex used to predict relies predominantly
on data collected by the Space Surveillance Network of Cosmosis. Since the cessation of
Cosmosis-Celestria diplomatic relations, Celestria has shut down all of Cosmosis’ terrestrial radar
655 operations within Celestria’s borders, coupled with subsequent national security regulations
prohibiting sensitive data transfer to Cosmosis. These measures have significantly impacted
Cosmosis’ Space Surveillance Network’s accuracy on Celestria related space activities.
Regarding the hardware, we find that the onboard sensors of Astra satellites have an error
rate from 5% to 10% in detecting and avoiding objects smaller than 20 centimeters approaching
660 from certain angles. This flaw, as our investigation suggests, cannot be rectified with software
updates as previously suggested by Astracommex.
The heightened risks of collision in space, particularly due to the potential onset of Kessler
Syndrome,17 significantly compromises the safety of Celestria’s space operations. The issue is
especially pertinent for the Department of Defense’s assets operating in 400km altitude orbits,
665 where the risk of satellite collisions presents a national security concern.

17
Kessler Syndrome is a scenario in which the density of objects in low Earth orbits (LEO) due to space pollution is
numerous enough that collisions between objects could cause a cascade in which each collision generates space debris
that increases the likelihood of further collisions.

27
Moreover, such collisions are a primary source of space debris, i.e., space junk. According
to Articles I and II of the National Environmental Protection Act, it is mandatory for governmental
agencies to consider the protection of the human environment, including outer space, in their
decision-making processes.
670 In light of these concerns and under the authority of the Celestria National Security Law
and the National Environmental Protection Act, the Department of Defense hereby issues the
following directives:
i. Orbital Adjustments: All Astra satellites currently in 400km altitude orbits must be
relocated to orbits below 350km. This includes repositioning 99 existing satellites
675 (AS100 is not included) and coordinating with the Department of Defense for any future
satellite launches adjacent to 400km orbits by Astracommex Regional in Celestria.
ii. Suspension of Operations: All satellite communications within Celestria’s territory
must be suspended by Astracommex Regional until the orbital adjustments are completed.
Immediate adherence to these instructions is required. Failure to comply will result in legal
680 consequences, including penalties and possible criminal charges. Astracommex has the right to
appeal this decision in accordance with Celestria Administrative Law.

Yours sincerely,

685
Sam Davis

28
C-10

Exhibit C-10 : FTA of 2 December 2003

FREE TRADE AGREEMENT BETWEEN THE GOVERNMENTS OF NEBULAND,


690 CELESTRIA AND COSMOSIS

[…]

Article 2
695 “The present Agreement shall apply to investments made before or
after its entry into force by investors of one Contracting Party,
in accordance with the legal provisions of another Contracting
Party and in the latter’s territory. It shall not apply to
differences or disputes that arose prior to its entry into force.”
700 […]

Article 15
The present Agreement can be terminated at any time by any
Contracting Party by notifying such termination to the other
705 Contracting Parties by courier addressed to the representatives
mentioned in Article 14 (the “Notice of Termination”).
The obligations arising under the Present Agreement shall cease to
exist fifteen (15) days after the delivery of the Notice of
Termination.
710 […]
Article 18
The present Agreement shall enter into force on the date of its
signature by all Contracting Parties.

715
Done on 2 December 2003 in 3 originals, in English.
[signatures omitted]

29
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES
720

In the arbitration proceeding between


725
Astracommex Regional Satellite Communication Inc.
(Claimant)
and
The Republic of Celestria
730 (Respondent)

RESPONSE TO THE REQUEST FOR ARBITRATION

735
11 November 2022

740

For the Respondent:


745 Dr. Janis Pletnik
CosmoLex
5 lunar bvd., 98479 Starvalis
Celestria

30
I. INTRODUCTION

750 1. The Republic of Celestria (“Celestria”), the Respondent in the present proceeding, hereby
submits a short response to the Claimant’s Request for Arbitration (the “Response”).

2. In this Response, unless otherwise stated, the Respondent adopts the abbreviations used in the
Claimant’s Request for Arbitration.

3. Unless otherwise stated, the Respondent disagrees with every statement made by the Claimant
755 in the Request for Arbitration.

II. THE TRIBUNAL LACKS JURISDICTION RATIONE TEMPORIS TO


ENTERTAIN THE CLAIMANT’S CLAIM

4. The Respondent considers that the Tribunal lacks jurisdiction ratione temporis over the dispute.

5. Article 2 of the BIT defines its scope and provides that “[t]his Agreement shall apply to legal
760 disputes in relation to investments that existed at the time of entry into force as well as to
investments made or acquired thereafter.”

6. Article 2 of the BIT is silent on whether it applies to disputes that existed prior to its entry into
force. Therefore, the Tribunal should apply general international law and notably Article 28 of
the Vienna Convention on the Laws of Treaties which entered into force on 27 January 1980
765 (“VCLT”) and provides that:

Unless a different intention appears from the treaty or is otherwise established, its
provisions do not bind a party in relation to any act or fact which took place or any situation
which ceased to exist before the date of the entry into force of the treaty with respect to
that party.
770
7. In the case at hand, the intention of the BIT’s contracting parties was to exclude disputes that
arose prior to its entry into force, as the contracting parties made clear in a binding interpretive
statement that they issued on 10 October 2022.18

8. Furthermore, the dispute between the Parties arose and crystallized prior to the entry into force
775 of the BIT for several reasons.

18
Exhibit R-1, Declaration concerning the Agreement on reciprocal promotion and protection of investments between
the Kingdom of Nebuland and Republic of Celestria, 10 October 2022.

31
9. First, the root of the dispute between the Parties is the denial by Astracommex Regional of
Celestria’s right to adopt environmental regulations as shown by the comments of its CEO on
the date of the adoption of the NEPA.19

10. Second, on 15 October 2020, faced with the request by the NFA to produce additional materials
780 concerning the atmospheric impact of Astra satellite reentries, Astracommex Regional sent a
letter to the NFA contesting such request and declining to “provide additional materials.”20
Astracommex Regional thus disregarded a request made by an agency of Celestria.

11. Third, most of the factual matrix on which the Claimant is relying upon in the Request occurred
prior to the entry into force of the BIT.

785 12. Accordingly, the Respondent respectfully requests the Tribunal to declare that it lacks
jurisdiction over the Claimant’s claims against the Respondent.

III. THE RESPONDENT’S MEASURES DO NOT AMOUNT TO EXPROPRIATION

13. If the Tribunal dismisses the Respondent’s jurisdictional objection, the Respondent affirms
that it respected at all times its treaty obligations towards the Claimant. The Respondent
790 undertook regulatory and administrative measures within its power for the safety and well-
being of its citizens and the environment. None of the Respondent’s actions constitutes
expropriation under Article VII of the BIT.

14. First, the Claimant retains the ownership, operation, and control over all its satellites and
continues to provide services on territories other than that of the Respondent, for instance in
795 the Kingdom of Nebuland. As such, the Respondent opposes the Claimant’s conclusion that it
had suffered any deprivation of its property rights, not to mention a “significant deprivation.”

15. Moreover, the Claimant’s assertions as to the permanent nature of the suspension of the
Claimant’s satellite communications within Celestria’s territory are also unfounded. The
Claimant’s operations are suspended only until the Claimant successfully repositions the
800 400km satellites, of which, as the Claimant itself submitted, the satellites are more than

19
Exhibit R-2, “The Green Party enacts the National Environmental Protection Act”, the Cosmosis Post, 1 April 2020.
20
Exhibit R-3, Letter from Astracommex Regional to the NFA, 15 October 2020.

32
capable.21 It is thus by the Claimant’s own choice that its operations remain suspended. The
suspension cannot be deemed permanent in nature.

16. Lastly, out of abundance of caution, the Respondent notes that Celestria has made the following
notification under Article 25(4) of the ICSID Convention:

805 Pursuant to Article 25(4) of the ICSID Convention, the Republic of Celestria will only
consider submitting disputes over expropriation and nationalization to the jurisdiction of
the International Centre for Settlement of Investment Disputes.

IV. IN ANY EVENT, THE MEASURES ARE JUSTIFIED UNDER THE APPLICABLE
INTERNATIONAL LAW

810 17. The regulatory actions from respectively the Celestrian Space Agency, the National Frequency
Agency (“NFA”), and the Department of Defense (“DoD”) are justifiable and thus do not entail
the international responsibility of the Respondent.

18. The Celestrian Space Agency’s action is a legitimate exercise of police power for public
welfare. Optical and radio astronomy are important for the public not only for purposes of
815 science, but also for preventing or mitigating catastrophic events like asteroid impact. As part
of the UN-endorsed International Asteroid Warning Network (“IAWN”), the Celestrian Space
Agency utilizes its ten major telescopes for discovering, monitoring, and physically
characterizing the potentially hazardous near-Earth objects.22

19. The NFA’s decision was informed by evidence of atmospheric impacts gathered by the
820 Celestria Institute of Technology, a laboratory sponsored by the Environmental Protection
Agency (“EPA”).23 The NFA’s approach aligns with the precautionary principle enshrined in
Article V of the BIT. The principle’s objective is to anticipate and avoid environmental damage
before it occurs, in recognition of the need to protect human health and the environment by
taking precautionary measures while scientific studies are undertaken to qualify the risk or
825 risks associated with a course of action.24 The absence of evidence that mass scale satellite
reentries would not negatively impact the stratosphere was sufficient to activate the principle.

21
Request for Arbitration, para. 18.
22
Exhibit R-4, Celestrian Space Agency’s Study on Astra Satellites’ Impact on Astronomy, 20 May 2020.
23
Exhibit R-6, Study on Atmospheric Effects of Spacecraft Reentries, 1 October 2020.
24
Exhibit R-5, Scientists’ Call to Halt Satellite Light Pollution, 30 May 2020.

33
20. The DoD’s measures address concerns about environmental impacts from space debris and
national security, including potential collision with DoD’s military assets in adjacent orbits.
The DoD investigation revealed both software and hardware flaws in the Claimant’s system,
830 threatening Celestria’s essential security. The Claimant asserted that the DoD decision was
“outside of Celestria’s jurisdiction.” However, the Respondent was not claiming jurisdiction
over the Claimant’s satellites per se. Instead, it was regulating the use of outer space orbits,
which are designated as global commons under Article I of the Outer Space Treaty:

Outer space, including the Moon and other celestial bodies shall be free for exploration and
835 use by all States without discrimination of any kind […] and there shall be free access to
all areas of celestial bodies.

V. CONSTITUTION OF THE TRIBUNAL

21. In accordance with Rule 16 of the ICSID Arbitration Rules, the Respondent appoints
Prof. Brynn Sterling, a national of Lyonnaisia, as its arbitrator.

840 22. Prof. Sterling’s contact information if the following:

Prof. Brynn Sterling


25 rue du ciel bleu
00056 Lumière-sur-Isle
Lyonnaisia
845 Email: bsterling@sterling.org

VI. RELIEF SOUGHT

23. In light of the above, the Respondent respectfully requests the Tribunal to:

i. DECLARE that is has no jurisdiction to hear the Claimant’s claim; and

ii. If the Tribunal finds that it has jurisdiction over the dispute, DECLARE that the
850 Respondent’s actions do not amount to expropriation under Article VII of the BIT
and reject the Claimant’s claims; and

iii. ORDER the Claimant to bear the entire cost of the proceedings.

24. The Respondent reserves the right to further develop its arguments.

For the Respondent,


855
CosmoLex Associates

34
Kingdom of
R-1
Government
Nebuland
Exhibit R-1: Declaration of 1 0 October 2022 Concerning the Agreement on Reciprocal Promotio n and Pro tection of Investments Between the Kin gdom of Nebuland and the Republic of Celestr ia

of Celestria
Freedom - Peace - Prosperity

860
10 October 2022

Re: Declaration concerning the Agreement on reciprocal promotion and protection of


investments between the Kingdom of Nebuland and Republic of Celestria
865
The Kingdom of Nebuland and the Republic of Celestria hereby declare that Article II of the
Agreement on reciprocal promotion and protection of investments between the Kingdom of
Nebuland and Republic of Celestria that entered into force on 1 February 2021 is to be interpreted
as precluding the adjudication of legal disputes that arose prior to 1 February 2021.
870

For Nebuland For Celestria

875 Mr. Janis Solaris Ms. Stella Mercury


Minister of Justice Minister of Foreign Affairs

35
R-2

Exhibit R-2: News Article of 1 April 2020 from the Cos mosis Po st

880 The Cosmosis Post


Politics Economy Sports The 2020 Election Shopping Food

885

The Green Party Enacts the National Environmental Protection


Act
Three months after the elections, the Green Party officially initiates the implementation of its
environmental agenda.
890 By Matthew Greenblue
1 April 2020 at 13:23 CET

Crowd celebrating the victory of the Green Party on 15 January 2020

895
Less than three months after the elections, the Congress of Celestria adopted the National
Environmental Protection Act (“NEPA”) implementing the campaign promises of the
Green Party. As our readers may recall, during the electoral campaign, the Green Party
presented several environmentally friendly policies promises such as the “Green Wall”
900 project aiming to fight the rising ocean levels or a full-scale transition to clean energy.

36
The NEPA is the cornerstone of the Green Party’s projects since it grants power to
government agencies to issue binding decisions on environmental concerns. The NEPA also
allows said agencies to provide recommendations and opinions on environmental issues.
“I am verry happy that Congress adopted NEPA” said earlier today, Billie Ruckelshaus, the
905 new President of Celestria. The former civil rights activist added that “it is time for Celestria
to join the developed world by ensuring a safe future to our citizens.”
The NEPA was unanimously adopted by the newly elected majority and was only opposed
by the members of the former ruling party.
Soon after the adoption of NEPA, several thousand Celestrians gathered in the main square
910 of Starvalis to celebrate the beginning of a new era. “I finally have hope that my children will
be able to continue and live in our beautiful land”, said M., a local farmer who preferred to
stay anonymous.
Not all, however, are happy with the adoption of the NEPA. Mr. Jeffrey Myskin, the CEO
of a satellite company that operates in Celestria, raised concerns about the broad powers
915 granted to the local agencies. “One needs to be careful when allocating such broad and
discretionary power to bureaucrats that do not always understand the ins and outs of a
business”, Mr. Myskin said. “Astracommex has been providing exceptional service to the
people of Celestria and I am concerned that local agencies will try to hijack our operations
by painting them as environmental concerns” added the billionaire.
920

37
R-3

Exhibit R-3: Letter of 15 October 2020 from Astracommex Regional to NFA

To:
National Frequency Agency
925 3 hertz boulevard
98479 Starvalis
Celestria

15 October 2020
930 Re: Astracommex Regional’s response on the request for atmospheric environmental impact
assessment

Dear Director,
I am writing to you on behalf of Astracommex Regional in response to your recent request
for additional materials concerning the atmospheric impact of Astra satellite reentries. While we
935 share your commitment to preserving our planet’s atmosphere, we find the nature of your request
to be outside the reasonable scope of current environmental regulatory frameworks, namely, the
National Environmental Protection Act (“NEPA”).
NEPA’s Article IV exempts existing projects from retroactive application. Our current
submission on 1 September 2020 is not a new application but a modification request to existing
940 projects with the same agency (i.e., the NFA). The NFA had previously authorized the spectrum
for Astra System operations in Celestria via the RDF Agreement on 1 October 2016. Modifications
to this spectrum, necessitated by Celestria Space Agency’s directive to minimize astronomical
light interference, should not trigger a complete reevaluation under the NEPA.
Even if the NEPA applies, Astracommex Regional shouldn’t bear the burden to provide
945 positive evidence to prove that reentries will not negatively impact the atmosphere. The study cited
in your request does not refute our argument that the alumina produced by Astra satellites would
be a fraction of a percentage of all metals introduced into the atmosphere naturally by meteoroids.
There is no concrete evidence linking reentering satellites to environmental harm.
Importantly, the design and operation of Astra satellites fully comply with both national and
950 international guidelines for space debris mitigation and environmental impact. Our satellites are
engineered to be fully demisable, ensuring that they burn up entirely upon re-entry into the Earth’s
atmosphere, leaving no physical debris that could contribute to environmental harm.
Due to the reasons mentioned above, we respectfully decline to provide additional materials.
Respectfully submitted,

955

Jeffrey Myskin

38
R-4

y
Exhibit R-4: Celestrian Space Agency’s Study on A stra Satellites’ Impact on Astrono m

THE CELESTRIA JOURNAL OF ASTROPHYSICS, 20 May 2020


960 © 2020. The Authors. Published by the Celestrian Astronomical Society http://doi.org/celestria_report/2020

Impact of the Astracommex Astra Satellites on Optical and Radio


Observatories in Celestria
Celestrian Space Agency
965 Abstract
The increasing deployment of low-Earth-orbit (LEO) satellite networks, particularly the Astra
System by Astracommex, is raising concerns for ground-based astronomy, especially in wide-field
optical and infrared surveys. Celestrian Space Agency operates ten large observatories in the
territory of Celestria. This study focuses on the impacts of LEO satellite mega-constellations –
970 mainly the Astra System – on astronomical research. Our analysis of archival data from 1 March
2017 to 1 March 2020 reveals approximately 3500 satellite trails traced back to satellites in the
Astra System. There’s a noticeable upward trend in the number of compromised images correlating
with Astracommex’s ongoing satellite launches. Twilight observations are most affected, with the
proportion of streaked images soaring from under 0.5% in 2017 to 18% by 2020. Projections
975 indicate that, upon the Astra system reaching 5000 satellites, nearly all twilight images from the
ten Celestrian observatories might be affected.

1. INTRODUCTION
The Celestrian Space Agency maintains a network of ten large observatories, each strategically
980 located on the middle or small-size islands of Celestria to mitigate the effects of artificial light
from the urbanized main island. These observatories are positioned across the diverse islands of
Celestria to ensure comprehensive coverage across Celestria’s territory.

[the rest is intentionally omitted]


985
6. ASSESSMENT OF IMPACT TO THE PUBLIC
Astronomical studies, pursuing a range of critical topics from stellar populations to near-Earth
object tracking, rely on unobstructed views of the sky. The emergence of satellite trails not only
leads to data loss or reduced signal quality but also poses significant risks to time-sensitive and
990 high-priority research. For instance, missing a near-Earth object 25 due to satellite interference
could mean losing vital orbital data. Similarly, failing to capture a super-Earth exoplanet’s transit
or the optical counterpart of a gravitational wave source could result in irretrievable scientific
opportunities.

25
Celestrian Space Agency has been an active member in the UN-endorsed International Asteroid Warning Network
that discovers, monitors, and charactering potentially hazardous near-Earth objects since 2017.

39
Furthermore, understanding the satellites’ impact on large-scale studies (like those conducted by
995 the Vera C. Rubin Observatory in the future) requires even more sophisticated modeling. Such
research, often affected by systematic uncertainties rather than sample size limitations, includes
precision cosmology measurements like gravitational weak lensing shear. The interference from
these satellites could significantly impede progress in these fields, underscoring the need for
comprehensive modeling to gauge their full impact.
1000
[the rest is intentionally omitted]

---Disclaimer---
The exhibit presented herein is based on the original research titled “Impact of the SpaceX Starlink
1005 Satellites on the Zwicky Transient Facility Survey Observations” by Przemek Mróz et al, published
in The Astrophysical Journal Letters on 10 January 2022. The contents have been reproduced and
adapted with fictional details exclusively for the purposes of the 2024 Foreign Direct Investment
(FDI) Moot Court. This adaptation is not intended to represent the original work accurately and
should not be used as a substitute for the original research.
1010

40
R-5

Exhibit R-5: Scientists’ Call to Halt Satellite Ligh t Pollu tion

Astra Nature Astronomy26

Comment | Published: 30 May 2020

1015 A call for scientists to halt the spoiling of the night


sky with artificial light and satellites
By Amateur Astronomy Association

The availability of clear night sky viewing is quickly dwindling as a result of


1020 artificial light and the tracking of constellations by satellites. Scientists need to
take a stronger stance against “big light” and “big space” in order to protect
this natural resource.

Light pollution, produced both at Earth’s surface and from low-Earth-orbit (LEO) satellites, is
1025 rapidly increasing. Artificial light at night (ALAN) is an anthropogenic pollutant, as defined since
1979 by the United Nations: “[a]ir pollution means the introduction by man, directly or indirectly,
of substances or energy into the air resulting in deleterious effects of such a nature as to endanger
human health, harm living resources and ecosystems and material property and impair or interfere
with amenities and other legitimate uses of the environment, and ‘air pollutants’ shall be construed
1030 accordingly,” where “energy is understood to include heat, light, noise and radioactivity introduced
and released into the atmosphere through human activities.”27
[intentionally omitted]
Reading the recent reports on light pollution by LEO satellites including the recent one by
Celestrian Space Agency,28 we are very pessimistic about the path being followed by an important
1035 part of the scientific community (and other actors) that works on and has responsibilities for these
areas of research. This situation echoes historical patterns seen in various fields, from tobacco
smoke to climate change, diesel emissions, asbestos, and opioids. In these instances, whenever
scientific literature begins addressing a health or environmental issue, those responsible often
deploy a “machine of doubt” to delay, or even halt, the implementation of necessary
1040 countermeasures and regulations.

26
Astronomy Association is a peer-reviewed scientific journal published by the Astra Nature Publishing Group. It
focuses on all aspects of astronomy, astrophysics, and planetary science. As a part of the prestigious “Astra Nature”
family of journals, it is known for its high impact and rigorous peer-review process, aiming to publish the most
significant and cutting-edge research in these fields.
27
1979 Convention on Long-Range Transboundary Air Pollution (United Nations, 1996).
28
Celestrian Space Agency, Impact of the Astracommex Astra Satellites on Optical and Radio Observatories in
Celestria, THE CELESTRIA JOURNAL OF ASTROPHYSICS, 20 May 2020.

41
This strategy is alarmingly consistent: polluters deny evidence, fund contrary research, and
procrastinate on pollution limits, leading to millions of deaths and an over-polluted world. Now,
as we face the challenges posed by “big space,” one must question if their tactics will differ from
those of “big oil,” “big tobacco,” or “big pharma.” The current approach to the problem of LEO
1045 satellites — trying to mitigate their impact by dimming their brightness, adjusting telescope
operations, or avoiding their paths — is insufficient and does not address the full scope of the issue.
If unchecked, the proliferation of satellites will drastically change our night skies, with hundreds
or thousands visible at any given moment, obscuring the view that has been a human heritage for
millennia.
1050 We thus call on all relevant actors to rebuild international cooperation and agreement in order to
avoid escalation. It’s particularly crucial for governments to not be swayed or hindered by the so-
called “machine of doubt.” They possess a potent instrument through Principle 15 of the Rio
Declaration:
In order to protect the environment, the precautionary approach shall be widely applied
1055 by States according to their capabilities. Where there are threats of serious or irreversible
damage, lack of full scientific certainty shall not be used as a reason for postponing cost-
effective measures to prevent environmental degradation.
[the rest is intentionally omitted]

1060 ---Disclaimer---
The exhibit presented herein is based on the original comment titled “A call for scientists to halt
the spoiling of the night sky with artificial light and satellites” by Fabio Falchi et al, published in
Nature Astronomy on 20 March 2023. The contents have been reproduced and adapted with
fictional details exclusively for the purposes of the 2024 Foreign Direct Investment (FDI) Moot
1065 Court. This adaptation is not intended to represent the original work accurately and should not be
used as a substitute for the original research.

42
R-6

Exhibit R-6: Study on A tmo spheric Effects of Spacecraft Reentries

RESEARCH ARTICLE | EARTH, ATMOSPHERIC, AND PLANETARY SCIENCES

1070 Metals from spacecraft reentry in stratospheric aerosol


particles
Geoscience Research Lab from Celestria Institute of Technology; Published 1 October 2020

When used rockets, retired satellites and other space debris fall back to Earth, they often burn up,
creating metal vapors. These vapors then turn into tiny particles in the stratosphere. Previous
1075 studies mostly looked at the risk of space debris hitting the ground, not what happens to these
vaporized metals. Now, we’ve found that these metal vapors can be clearly measured in
stratospheric sulfuric acid particles. We detected over 20 different elements from reentry, matching
the types of metals used in spacecraft. The amounts of lithium, aluminum, copper, and lead from
these reentries are even more than what comes from cosmic dust. Roughly 10% of certain larger
1080 sulfuric acid particles in the stratosphere have these metals from spacecraft. As more satellites will
be launched in the coming years, up to half of these stratospheric particles might contain reentry
metals. However, it’s still unclear what effect this increased metallic presence will have on the
stratosphere’s aerosols.
[intentionally omitted]
1085 The discovery of metals from spacecraft reentry in stratospheric sulfuric acid particles opens up
the possibility of several potential impacts, although definitive consequences are yet to be
determined. One significant concern is the effect these metals, particularly aluminum and other
novel elements, might have on the formation of ice or nitric acid trihydrate (NAT) in the
atmosphere. Given that polar stratospheric clouds form around a small fraction of particles, the
1090 introduction of new types of ice nuclei from spacecraft metals could have a substantial impact.
Similarities have been noted between these metals and meteoric inclusions in sulfuric acid, which
are known to act as ice nuclei. Furthermore, metal cations in these particles could lead to
efflorescence, a process where water is released from the particles, potentially affecting
atmospheric chemistry and physics.
1095 A reexamination of older mass spectra, in light of these findings, revealed the presence of particles
from spacecraft reentry in ice residuals of high-altitude cirrus clouds as far back as 2002. However,
the frequency of these particles in the clouds was not significantly different from that of meteoric
elements. This suggests that while spacecraft reentry particles are indeed making their way into
various atmospheric layers, their impact, particularly in comparison to natural meteoric elements,
1100 is still an area requiring further investigation.
[intentionally omitted]
The space sector is currently experiencing significant expansion. The plan to deploy tens of
thousands of small satellites into low Earth orbits will result in a greater number of these satellites
eventually reentering the Earth’s atmosphere. Presently, about 10% of particles in the stratosphere

43
1105 have an increased concentration of aluminum. With the anticipated rise in satellite reentries, it is
expected that in the next few decades, a similar proportion of stratospheric sulfuric acid particles
will contain aluminum and other metals from these reentries, potentially reaching levels close to
the current 50% of stratospheric particles that contain metals from meteors.

1110 ---Disclaimer---
The exhibit presented herein is based on the original research titled “Metals from spacecraft
reentry in stratospheric aerosol particles” by Daniel Murphy et al, published in PNAS on 7
September 2023. The contents have been reproduced and adapted with fictional details exclusively
for the purposes of the 2024 Foreign Direct Investment (FDI) Moot Court. This adaptation is not
1115 intended to represent the original work accurately and should not be used as a substitute for the
original research.

44
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES
1120

In the arbitration proceeding between


1125
Astracommex Regional Satellite Communication Inc.
(Claimant)
and
The Republic of Celestria
1130 (Respondent)

ICSID Case No. ARB/22/99

1135

PROCEDURAL ORDER NO. 1

1140 Members of the Tribunal


Mr. Jackson Cole, President of the Tribunal
Dr. Nika Havendale, Arbitrator
Prof. Brynn Sterling, Arbitrator

1145 Secretary of the Tribunal


Mr. Dapo Olasibi

27 May 2023
1150

45
Order
Pursuant to ICSID Arbitration Rules 27 and 29, this Procedural Order sets out the
Procedural Rules that govern this arbitration. The Procedural Timetable is attached in Annex A.

1155 1. Applicable Arbitration Rules


Convention Article 44; Arbitration Rule 1
1.1 These proceedings are conducted in accordance with the ICSID Arbitration Rules in force
as of 1 July 2022, and the Official Rules of the Foreign Direct Investment International
Arbitration Moot (“FDI Rules”). In case of inconsistency between the two, the latter shall
1160 prevail to the extent to the inconsistency.

2. Constitution of the Tribunal and Tribunal Members’ Declarations


Arbitration Rule 21
2.1 The Tribunal was constituted on 24 April 2023 in accordance with the ICSID Convention
and the ICSID Arbitration Rules. The parties confirmed that the Tribunal was properly
1165 constituted and that no party has any objection to the appointment of any Member of the
Tribunal.

2.2 The Members of the Tribunal timely submitted their signed declarations in accordance with
ICSID Arbitration Rule 19(3)(b). Copies of these declarations were distributed to the
parties by the ICSID Secretariat.

1170 2.3 The Members of the Tribunal confirmed that they have sufficient availability during the
next 24 months to dedicate to this case and that they will use best efforts to meet all time
limits for orders, decisions and the Award, in accordance with ICSID Arbitration Rule
12(1).

3. Presence and Quorum


1175 Arbitration Rule 33
3.1 The participation of a majority of the members of the Tribunal by any appropriate means
of communications is required at the first session, case management conferences, hearings
and deliberations, except as otherwise provided in the Arbitration Rules or unless the
parties agree otherwise.

46
1180 4. Rulings of the Tribunal
Convention Article 48(1); Arbitration Rules 10, 11(4), 12, 27 and 35
4.1 Decisions of the Tribunal shall be taken by a majority of the Members of the Tribunal.

4.2 The President is authorized to sign procedural orders and decisions on behalf of the
Tribunal.

1185 4.3 When the matter is urgent, the President may decide procedural matters without consulting
the other Members, subject to possible reconsideration of such decision by the full Tribunal.

5. Representation of the Parties


Arbitration Rule 2
5.1 Each party shall be represented by its counsel (below) and may designate additional agents,
1190 counsel, or advocates by notifying the Tribunal and the Tribunal Secretary promptly of
such designation.
For the Claimant For the Respondent
Ms. Astrid Stellaris Dr. Janis Pletnik
AstroJuris Arbitration CosmoLex
3 Saturn St., 48798 Stelaria 5 lunar bvd.
Nebuland 98479 Starvalis Celestria
Tel: 019679876 Tel: 098792764
Email: astellaris@astrojuris.glob Email: jpletnik@cosmos.net

6. Apportionment of Costs and Advance Payments to ICSID – Division of Advances


Convention Article 61(2); Administrative and Financial Regulation 15; Arbitration Rule
50
1195 6.1 The parties shall cover the direct costs of the proceedings in equal parts, without prejudice
to the final decision of the Tribunal as to the allocation of costs.

7. Place of Proceeding and Hearings


Convention Articles 62 and 63; Arbitration Rule 32
7.1 Berlin, Germany, shall be the place of the proceeding.

1200 7.2 The Tribunal may hold in-person hearings at any other place that it considers appropriate.

7.3 The Tribunal members may deliberate at any place and by any appropriate means they
consider convenient.

47
8. Procedural Language(s), Translation and Interpretation
Arbitration Rule 7
1205 8.1 English is the procedural language of the arbitration.

8.2 Documents filed in any other language must be accompanied by a translation into English.

8.3 It is sufficient to translate only the relevant part of a supporting document, unless the
Tribunal orders a party to provide a fuller or a complete translation.

9. Production of Documents
1210 Convention Article 43(a); Arbitration Rules 5 and 36-40
9.1 On the date determined in Annex A, each Party may serve a request for production of
documents on the requested Party. The request shall be made in the form of the Schedule
attached in Annex B, in both Word and PDF format, and shall not be copied to the Tribunal
or the Tribunal Secretary.

1215 9.2 On the date determined in Annex A, the requested Party shall, using the schedule provided
in Annex B, provide the requesting Party with reasoned objections for its refusal to produce
responsive documents.

9.3 On the date determined in Annex A, the requested Party shall produce the requested
documents to which it has not filed any objection.

1220 9.4 On the date determined in Annex A, the requesting Party shall reply to the requested Party’s
objections in that same schedule, and if disagreements cannot be resolved, shall submit the
schedule to the Tribunal, with a copy to the requested Party (in both Word and PDF
formats).

9.5 The Tribunal will make its best efforts to rule on the objections in a timely manner.

1225 9.6 Neither Party shall be permitted to submit additional requests to produce documents, save
under exceptional circumstances at the discretion of the Tribunal upon a reasoned written
request followed by observations from the requested Party.

10. Submission of Documents


Convention Article 44; Arbitration Rule 5; FDI Rule 6.1
1230 10.1 The Memorial and Counter-Memorial shall be accompanied by the documentary evidence
relied upon by the parties, including exhibits and legal authorities.

48
10.2 The Memorial and Counter-Memorial must be contained in a single file and submitted in
PDF format.

10.3 Equipment or software failure is not considered as an excuse for improper formatting or
1235 late submission of the Memorial and Counter-Memorial.

10.4 The Parties may not revise, substitute, delete, or in any other manner alter the Memorial
and Counter-Memorial once submitted.

10.5 The Memorial and Counter-Memorial shall comply with FDI Rules 6.2 through 6.7.

11. Hearings
1240 Arbitration Rule 32, FDI Rule 7
11.1 The main hearing may be held in-person or by any other means of communication as
determined by the Tribunal.

11.2 The main hearing shall take place in Berlin on 1-4 November 2024.

11.3 The main hearing will address the following issues:

1245 i. Whether the Tribunal has jurisdiction ratione temporis under the BIT to hear
the Claimant’s claim; and

ii. Whether the Respondent breached Article VII of the BIT.

11.4 As agreed between the Parties and the Tribunal, the evidence that may be relied on in the
proceeding will be limited to (a) facts and assertions contained in the Request for
1250 Arbitration and the Response to it, the “Statement of Uncontested Facts” as will be agreed
to between the parties, and appended to a Procedural Order (with no admission being made
by either of the Parties as to correctness of the inferences from facts asserted by the other
Party in its respective submission); (b) publicly available information (subject to the
exception in paragraph 11.5); and (c) responses to the questions presented by the Parties’
1255 counsel in accordance with the procedure described below:

i. By 1 June 2024 factual questions that require clarification shall be posted in


accordance with the procedure described at
https://fdimoot.org/teams/clareqs.php;

49
ii. The Parties shall then confer and seek to agree as soon as practicable on the
1260 responses to those questions. The Parties’ agreed responses shall be appended
to the case file at https://fdimoot.org/problem.pdf; and

iii. By 15 August 2024 another set of factual questions may be posted in accordance
with the same procedure referenced above. The responses to those questions
shall be appended as described above.

1265 11.5 As agreed between the Parties and the Tribunal, the scientific evidence that may be relied
on in the proceeding will be limited to those contained in paragraphs 11.4 (a) and (c).

On behalf of the Tribunal,

1270 _____________________
Mr. Jackson Cole
President of the Tribunal
27 May 2023

50
Annex A – Procedural Timetable

1275 [intentionally omitted]

Annex B – Redfern schedule

A. B. C. D. E.
Documents or Relevance Objections Reply to the Decision
Category of and to the Objections
Documents Materiality Request
Requested
1.

51
1280 INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES

In the arbitration proceeding between


1285
Astracommex Regional Satellite Communication Inc.
(Claimant)
and
The Republic of Celestria
1290 (Respondent)

ICSID Case No. ARB/22/99

1295 PROCEDURAL ORDER NO. 2


(Document Production)

1300 Members of the Tribunal


Mr. Jackson Cole, President of the Tribunal
Dr. Nika Havendale, Arbitrator
Prof. Brynn Sterling, Arbitrator

1305 Secretary of the Tribunal


Mr. Dapo Olasibi

1 June 2024
1310

52
I. INTRODUCTION

1. This Procedural Order No. 2 (“PO2”) comprises the Tribunal’s decision on the Astracommex
Regional’s and Celestria’s (together the “Parties”) requests to produce documents as set out
1315 in their respective Redfern schedules. The Tribunal’s decision on Astracommex Regional’s
requests is set out in annex A to this PO2 and the Tribunal’s decision on Celestria’s requests
is set out in annex B to this PO2.

II. PROCEDURAL BACKGROUND

2. [Intentionally omitted]

1320 III. APPLICABLE PRINCIPLES

3. In accordance with paragraph 10 of Procedural Order No. 1 (“PO1”) and without prejudice to
Article 43(a) of the ICSID Convention, the Tribunal has been guided by ICSID Arbitration
Rule 37 in evaluating the Parties’ requests (including their objections and replies).

4. The Tribunal has carefully considered each of the requests, objections and replies made by the
1325 Parties as set out in their respective schedules. The Tribunal’s decision on each individual
request is set out in the last column of the Parties’ Redfern schedules.

IV. THE TRIBUNAL’S GENERAL OBSERVATIONS

5. For the avoidance of doubt, the term “document” has the meaning of a writing, communication,
picture, drawing, program or data of any kind, whether recorded or maintained on paper or by
1330 electronic, audio, visual or any other means.

6. Where ordered to do so, the Parties are required to produce documents that are within their
possession, custody or control.

7. Any document the production of which is ordered by the Tribunal shall be communicated
within the time limit set out in the Procedural Timetable, directly to the requesting Party
1335 without copying the Tribunal.

8. Documents produced voluntarily as well as those produced pursuant to this PO2, shall only
form part of the record if and when they are submitted as exhibits to the main pleadings.
Otherwise, they shall not be taken into account by the Tribunal.

53
9. The Parties must undertake reasonable searches in relation to the requests that have been
1340 granted or voluntarily complied with. Any search that has already been undertaken by a Party
does not need to be carried out again, provided that such search was reasonable.

10. The Tribunal directs that where a party wishes to assert privilege, legal impediment or
confidentiality over a responsive document that it has been ordered to produce (or as otherwise
directed by the Tribunal), it should record that document in a privilege and confidentiality log
1345 to be provided to the other side. The Parties must produce any privilege and confidentiality
logs at the latest on the 15 June 2024.

V. DECISION

11. In light of the above, after having carefully considered the assertions made by the Parties and
taking into account the applicable principles, the Tribunal unanimously:

1350 i. DECIDES on the Parties’ requests as set out in the Redfern schedules that are attached
to this PO2 as annexes A and annex B, subject to the Parties applying the agreed and
reasonable search terms and date ranges as ordered above. These annexes form an
integral part of the PO2.

ii. ORDERS each Party to produce the documents pertaining to each of the requests that
1355 have been fully or partially granted by 15 June 2024 at the latest. Each Party that wishes
to assert that any of the documents to be disclosed or part thereof is privileged, subject
to legal impediment or confidential, to file a privilege and confidentiality log in
accordance with the general guidelines above.

1360 On behalf of the Tribunal,

_____________________
Mr. Jackson Cole
1365 President of the Tribunal
1 June 2024

54
Annex A Astracommex Regional’s Redfern schedule

A. B. C. D. E.
Documents or Relevance and Objections to the Reply to the Objections Decision
Category of Materiality Request
Documents
Requested
1. [Intentionally [Intentionally [Intentionally [Intentionally omitted] [Intentionally
omitted] omitted] omitted] omitted]
… [Intentionally [Intentionally [Intentionally [Intentionally omitted] [Intentionally
omitted] omitted] omitted] omitted]
23. Any and all Astracommex Celestria objects to Astracommex maintains The Request
documents and submits that the request for the the request and relates to
communications Astracommex was following reasons: respectfully applies to matters
between not liable for the • Complying the Tribunal to order the potentially
Celestria and collision. Celestria with the production of responsive relevant to
Valinor between used the incident to request is likely documents. this
December 2020 initiate an to entail data • Celestria failed to arbitration
and June 2021 investigation protection specify and and is
regarding the against issues. As substantiate the granted,
collision Astracommex and Valinor is in a alleged “data unless said
between to suspend the long-term protection issues.” documents
Astracommex’s operation of partnership with Celestria did not are
AS100 and satellites. Celestria’s even attempt to privileged or
Valinor’s military, the conduct a confidential
satellite, This move was search will reasonable search under PO2.
including, discriminatory likely entail data and only speculates
without being because no protection that such search
limited to, emails investigation and issues. Celestria would “likely
or other suspension of should not have entail” unspecified
communications, operations was to incur such a “data protection
minutes of issued for Valinor. risk. issues.” This
meetings, objection is
reports, The requested The request is therefore too
presentations documents are unreasonably unspecific for
and/or decisions relevant to assess burdensome. The Astracommex to
of authorities. whether the request should be respond to.
behavior of the dismissed because The request is
Department of of the overwhelming reasonable in its scope
Defense was non- likelihood that and is not burdensome.
discriminatory and requested documents Celestria again only
justified. will be privileged or “expects” the search to
confidential. be burdensome, without
Celestria should not providing any reason.
be required to incur Moreover, the request is
the costs and efforts not more burdensome
to look for and log than any other document
such documents. production request.

Annex B Celestria’s Redfern Schedule

1370 [Intentionally omitted]

55
1375 2 June 2024

To the attention of:


Mr. Jackson Cole, President of the Tribunal
Dr. Nika Havendale, Arbitrator
1380 Prof. Brynn Sterling, Arbitrator

REQUEST FOR SECURITY FOR COSTS

Dear Members of the Tribunal,

1385 We write on behalf of the Respondent in relation to the Claimant’s continuing bad faith
conduct in this proceeding.

1. Late payment of the initial advance payment requested by ICSID

The Respondent recalls that in accordance with ICSID Administrative and Financial
Regulation 15(1)(a), ICSID sends an initial advance payment request to a claimant upon the
1390 registration of the proceeding “to defray the estimated costs of the proceeding through the first
session of the [...] Tribunal.”

On 25 September 2022, ICSID sent such a request to the Claimant requesting the payment
of USD 150,000 by 25 October 2022. However, Astracommex did not make a payment by that
date. After having notified Astracommex’s default and providing it with an extra 15 days to make
1395 the payment, the Secretary-General of ICSID suspended the proceeding for lack of payment on 16
November 2022.29 The Claimants finally paid the requested amount only on 15 February 2023,
i.e., with a delay of 3 months.

2. The Claimant’s failure to disclose its Third-Party Funder

The Respondent recently discovered through the publication of the annual reports of two
1400 companies that Astracommex’s parent company issued a capital call to finance the present

29
Exhibit R-7, Letter from the Secretary-General to the Parties, 16 November 2022.

56
proceeding.30 These two companies must therefore be considered as Third-Party Funders (“TPF”).
Consequently, the Claimant had a duty to disclose their existence pursuant to ICSID Arbitration
Rule 14 but deliberately chose to violate this provision.

3. The Claimant’s conduct warrants the order of security for costs

1405 The Claimant’s late payment of the advance on costs and its reliance on TPF to finance
this proceeding demonstrates that the Claimant is impecunious. The Claimant’s impecuniosity is
further supported by the admission of its own quantum expert, Mr. Damus.31

The Claimants’ conduct combined with its impecuniosity will prevent Celestria from
recovering any adverse costs if those are ordered by the Tribunal.

1410 Therefore, in accordance with ICSID Arbitration Rule 53(1), the Respondent requests the
Tribunal to order the Claimant to post a security for costs in an amount not smaller than USD 2
million.

1415
CosmoLex Associates

30
Exhibit R-8 and R-9, Capital Call Notices, 13 July 2022.
31
Exhibit R-10, Appendix 3.1 of the Expert Report of Mr. Damus.

57
R-7

Exhibit R-7: Letter from the Secretary-General to the Parties

16 November 2022
1420 By email

Astracommex Regional Satellites Republic of Celestria


Communications Inc. c/o Dr. Janis Pletnik
c/o Ms. Astrid Stellaris CosmoLex
AstroJuris Arbitration 5 lunar bvd.
3 Saturn St. 98479 Starvalis
48798 Stelaria Celestria
Nebuland

Re: Astracommex Communications Inc. v. Celestria


(ICSID Case No. ARB/22/99)
1425
Dear Madam and Sir,

I write in reference to our letter of 25 October 2022, informing the parties of my intention
to suspend the proceeding for non-payment pursuant to ICSID Administrative and Financial
1430 Regulation 16(2)(b).

The outstanding payment of the Claimant has not been received by the Centre to date.
Therefore, pursuant to ICSID Administrative and Financial Regulation 16(2)(b), I have decided to
suspend the proceeding as of today’s date.
1435
Please note that upon payment of the outstanding amount by either party, the proceedings
will resume. Pursuant to ICSID Administrative and Financial Regulation 16(2)(c) “if [the]
proceeding is suspended for non-payment for more than 90 consecutive days, the Secretary-
General may discontinue the proceeding, after giving notice to the parties and to the […] Tribunal
1440 […] if constituted.”

Yours sincerely,

[signed]
1445
Sir Awe Some
Secretary-General

1450 cc: Members of the Tribunal

58
Marcial Ventures Ltd Annual Report of 15 May 2024 R-8

Exhibit R-8: Capita l Call Notice to Marcial Vent ures Ltd


Annex F

1455 13 July 2022


To: Marcial Ventures Ltd

ACTION REQUIRED
Capital Call Notice
1460 This Notice is being delivered pursuant to the Bylaws of Astracommex Global Satellite
Communication Inc. (the “Bylaws”). Capitalized terms used but not defined in this notice shall
have the meanings ascribed to such terms in the Bylaws.
We are writing to notify you that in accordance with Article VIII of the Bylaws, the Company
hereby requests a Capital Contribution in the amount of USD 5,000,000. Based on your Ownership
1465 Percentage of 12,5%, the total amount owed by you is USD 625,000.
Payment must be received on or prior to 28 July 2022.

Sincerely,
[signed]
1470 Mr. Jeffrey Myskin

59
Platonial Investments Annual Report of 15 May 2024 R-9

Exhibit R-9: Capital Call Notice to Platonial Inves tments

Annex F

1475 13 July 2022


To: Platonial Investments

ACTION REQUIRED
Capital Call Notice
1480 This Notice is being delivered pursuant to the Bylaws of Astracommex Global Satellite
Communication Inc. (the “Bylaws”). Capitalized terms used but not defined in this notice shall
have the meanings ascribed to such terms in the Bylaws.
We are writing to notify you that in accordance with Article VIII of the Bylaws, the Company
hereby requests a Capital Contribution in the amount of USD 5,000,000. Based on your Ownership
1485 Percentage of 12,5%, the total amount owed by you is USD 625,000.
Payment must be received on or prior to 28 July 2022.

Sincerely,
[signed]
1490 Mr. Jeffrey Myskin

60
R-10
Exhibit R-10 : Appendix 3.1 of the Expert Report of Mr. Damus

Mr. Damus
1495 Appendix 3.1 – Astracommex Regional’s Profit and Loss Statements

Nov 2018 - Oct Nov 2019 - Oct Nov 2020 - Oct Nov 2021 - Oct Nov 2022 - Oct
Oct 2016 - Oct 2017 Nov 2017 - Oct 2018 2019 2020 2021 2022 2023 Total
Income
RDF $ 50,000,000 $ - $ 50,000,000 $ 50,000,000 $ 50,000,000 $ - $ - $ 200,000,000
Internet Service Fee - - 500,000 800,000 - - 1,300,000
Total Income $ 50,000,000 $ - $ 50,000,000 $ 50,500,000 $ 50,800,000 $ - $ - $ 201,300,000

Expenses
Launches $ 100,000,000 $ 100,000,000 $ 400,000,000 $ 400,000,000 $ - $ - $ - $ 1,000,000,000
Ground Construction $ 32,000,000 32,000,000
Management fees 63,000 58,000 69,365 5,964 56,561 56,484 165,418 474,792
Office expenses 10,000 10,000 10,000 10,000 10,000 10,000 10,000 70,000
Legal expenses 20,000 20,000 20,000 500,000 1,000,000 9,000,000 $ - 10,560,000
Total Expenses $ 132,093,000 $ 100,088,000 $ 400,099,365 $ 400,515,964 $ 1,066,561 $ 9,066,484 $ 175,418 $ 1,043,104,792

Balance $ (82,093,000) $ (100,088,000) $ (350,099,365) $ (350,015,964) $ 49,733,439 $ (9,066,484) $ (175,418) $ (841,804,792)


1500

61
1505

9 June 2024

To the attention of:


1510 Mr. Jackson Cole, President of the Tribunal
Dr. Nika Havendale, Arbitrator
Prof. Brynn Sterling, Arbitrator
Response to the Request for Security for Costs

1515 Dear Members of the Tribunal,

The Claimant hereby submits its brief observations on the Respondent’s request for
security for costs. The Claimant reserves the right to further present its position in due course.

1. The Respondent’s action caused severe financial difficulties to the Claimant

The Claimant does not dispute that it was late in making the payment requested by the
1520 Centre on 25 September 2022. The late payment, however, is a direct consequence of the
Respondent’s actions described in the Request for Arbitration.

Contrary to the Respondent’s assertions, the Claimant acted in good faith and despite the
Respondent’s actions, was able to pay the requested amounts.

In such circumstances, a mere 3-month suspension cannot be the basis of a request for
1525 security for costs.

2. The Claimant did not fail to disclose a Third-Party Funder

ICSID Arbitration Rule 14 requires the disclosure of “the name and address of any non-
party from which the party, directly or indirectly, has received funds for the pursuit or defense of

62
the proceeding a donation or grant, or in return for remuneration dependent on the outcome of the
1530 proceeding.”

Marcial Ventures Ltd and Platonial Investments do not constitute third party funders under
the definition of ICSID Arbitration Rule 14 since they have held equity in Astracommex’s parent
company for several years now and the money was contributed to Astracommex further to a capital
call as provided for by the bylaws of its parent company.32

1535 Astracommex was thus under no obligation to disclose the names of Marcial Ventures Ltd
and Platonial Investments to the Tribunal.

In addition, if such disclosure obligation existed (quod non), the financing of a party by a
TPF is not sufficient to demonstrate “exceptional circumstances” which are required for a Tribunal
to order security for costs.

1540 Considering the foregoing, the Claimant requests the Tribunal to deny the Respondent’s
request for security for costs.

3. The Claimant will be able and are willing to pay adverse costs

Despite the Respondent’s actions that caused financial hardship for the Claimant, the
Claimant will be able to honor a hypothetical cost award. First, the Claimant has assets in the form
1545 of the satellites which are sufficient to cover an adverse cost award. Second, the Claimant is a
100% owned subsidy of Astracommex Global Communications Inc., which is solvent, and thus
the Claimant’s financial situation should be of no concern to the Respondent since it can enforce
any cost award against the assets of the former in accordance with Nebuland’s domestic law.33

In addition, the Claimant hereby confirms that it will honor any cost award rendered against
1550 it.

Considering the foregoing, the Claimant requests the Tribunal to deny the Respondent’s
request for security for costs.

AstroJuris Arbitration
1555
32
Exhibit C-10, Bylaws of Astracommex Global Satellite Communication Inc.
33
Exhibit C-11, Nebuland’s Code of Civil Procedure

63
C-10

Exhibit C-10 : By laws of Astracommex Global Satellite Communication Inc.

BYLAWS
OF
Astracommex Global Satellite Communication Inc.
1560 Article I
The name of the corporation is Astracommex Global Satellite Communication Inc.
[…]
Article VIII
If at any time, and from time to time, the Manager in good faith believes that the Company,
1565 or any of its affiliates, is, or at any time within the following ninety (120) days will be, in
the position of having payment obligations in excess of cash or equivalent resources with
which to fund such obligations, attempt to cause the Company, to borrow such funds, the
Manager shall make such situation, and in particular the amount (the “cash need amount”)
of the excess of obligations over resources so determined, known to the Members who shall
1570 each then be obligated to contribute to the Company, within fifteen (15) days following
receipt of notice from the Manager, funds in an amount equal to such Member’s Residual
Percentage multiplied by the cash need amount.
[…]
Article XII
1575 After paying taxes in accordance with the law, the remaining earnings of the Company shall
be available for dividend distribution to the Members. The Manager shall recommend a
dividend distribution plan to the Board of Directors within the first three (3) months
following the end of each fiscal year of the Company for the Board’s consideration and
approval or modification. In his or her recommendation, the General Manager shall
1580 consider that the Company has sufficient funds on hand to pay the dividends and meet its
approved capital expenditure budget and working capital requirement for the current
budget year. The Company shall not distribute dividends unless the losses of the previous
fiscal year(s) have been fully made up. The remaining undistributed dividend from previous
years may be distributed together with that of the current year and the Board of Directors
1585 may authorize the payment of dividends from undistributed dividends from previous years
at any time.

64
C-11

Exhibit C-11: Nebula nd’s Co de of Civ il Procedure

56 Art. 67 CODE OF CIVIL PROCEDURE

1590 TITLE II ENFORCEMENT

Article 67 An affiliate means any company that controls, is controlled by, or is under common control with
another company.

Article 68 If a party to a proceeding before a court of general jurisdiction fails to satisfy a pecuniary
obligation ordered by such court, any interested party may request the competent court to seize the
1595 assets of said party or of its affiliates.

Article 69 An award of an arbitral tribunal rendered pursuant the Convention on the Settlement of
Investment Disputes between States and Nationals of Other States shall create a right arising under a
treaty of Celestria. The pecuniary obligations imposed by such an award shall be enforced as if the award
were a final judgment of a court of general jurisdiction.

1600

65
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES

1605

In the arbitration proceeding between

Astracommex Regional Satellite Communication Inc.


1610 (Claimant)
and
The Republic of Celestria
(Respondent)

1615 ICSID Case No. ARB/22/99

NOTICE OF NON-COMPLIANCE WITH


DOCUMENT PRODUCTION
1620

20 June 2024

1625

For the Claimant:


1630 Ms. Astrid Stellaris
AstroJuris Arbitration
3 Saturn St., 48798 Stelaria
Nebuland

66
I. OVERVIEW

1635 1. On 1 June 2024 the Tribunal issued PO2 ordering Parties to produce documents identified in
Annex A and Annex B respectively.

2. On 15 June 2024 at 8:36 pm, Celestria sent an e-mail to Astracommex Regional Satellite
Communication Inc. (“Astracommex”), attaching the Privilege and Confidentiality Log, as
well as the list of produced documents. Due to the size of the files, Celestria also attached a
1640 link to an external storage website, where the documents were available to download. Based
on notification from the system, counsel for Astracommex logged in to the website at 8.53 pm
and downloaded all documents.

3. At 11:57 pm of the same day, Astracommex sent an e-mail to Celestria, also attaching the
Privilege and Confidentiality Log, as well as the list of produced documents. Celestria
1645 downloaded these the following morning from an external storage website.

4. Upon review, counsel for Astracommex noticed that Celestria did not produce an AS100
collision incident report dated 17 February 2021 under Request No. 23. Counsel for
Astracommex therefore immediately notified Celestria, expecting this to be a clerical or
technical error.

1650 5. Celestria responded by e-mail dated 16 June 2024. It stated that “after conducting reasonable
search, these were the documents responsive to Request No. 23 in possession of Celestria.”

6. Astracommex considers that this statement is false and is a purposeful tactic employed by
Celestria to obstruct Astracommex’s due process rights to argue its case. Astracommex became
aware of the existence of the AS100 collision incident report when an anonymous source
1655 mailed a redacted first page of the report to Astracommex’s offices on 13 February 2024. The
heavily redacted version shows that the document is responsive under the Request No. 23.34
Based on the seal and stamp attached to the document, it is clear that this document was
prepared by Valinor in cooperation with Celestria’s Department of Defense (“DoD”) and is
thus in possession of Celestria.

34
Exhibit C-12.

67
1660 7. Based on the available unredacted information, the governmental cubesat involved in the
collision was not part of the declared missile detection network. Instead, it was a prototype
cubesat being developed as part of an advanced anti-satellite weapon system, in collaboration
with the Celestrian DoD. The document also suggested that the AS100 was mistakenly
identified as its target. Consequently, this document appears to implicate Valinor as the cause
1665 of the collision, significantly jeopardizing Celestria’s position in this arbitration. Given the
contentious nature of anti-satellite weapons under international law, Celestria has a vested
interest in concealing this document and refraining from its disclosure.

8. Astracommex requests the Tribunal to draw an adverse inference from the fact that Celestria
breached its obligation under the PO2 and did not produce responsive documents. Alternatively,
1670 Astracommex requests that the Tribunal orders Celestria to re-perform the search in relation to
Request No. 23 of Annex A to the PO2 and produce all responsive documents, including the
unredacted version of the incident report.

II. REQUEST TO THE TRIBUNAL

9. Based on the above-mentioned, Astracommex respectfully requests the Tribunal to:

1675 i. DRAW adverse inference, assuming that unproduced document(s) would be detrimental
to Celestria’s case, from the fact that the Celestria failed to produce such document(s) as
required by the Tribunal in PO2 under Request No. 23; or alternatively

ii. ORDER Celestria to repeat the search and produce any document(s) further responsive to
Request No. 23, as ordered by the Tribunal in PO2, by 1 July 2024 at the latest.

1680

For the Claimant,

AstroJuris Arbitration

68
C-12

1685 Exhibit C-12: Collision Incident Report

Collision Incident Report

1690 This report analyses the events and key undertakings of a collision that occurred on 1 January
2021 at 08:54:32 CET between the CubeSat (CS007) in the Valinor’s anti-satellite weapon
system (Project Foraminis) and third-party satellite (AS100).

The following 57 pages contain the (I.) Analysis of the strength of the Solar Radiation Storm;
1695 (II.) Predicted debris trajectory after the Collision Event; (III.) Trajectory Simulation of AS100
and CS007 before the Collision Event; (IV.) Analysis of the effect of Solar Radiation Storm on
CS007’s Targeting System; and (V.) Analysis of the Impact of the collision with the Foraminis
System.

1700
Strength of the Solar Radiation Storm

1705

1710

29/12 30/12 31/12 01/01 02/01 03/01


Date (2021)

69
1715

Predicted Debris Trajectory after the Collision Event

70
1720
27 June 2024
To the attention of:
Mr. Jackson Cole, President of the Tribunal
Dr. Nika Havendale, Arbitrator
1725 Prof. Brynn Sterling, Arbitrator

RESPONSE TO THE NOTICE OF NON-COMPLIANCE WITH DOCUMENT


PRODUCTION
Dear Members of the Tribunal,

Celestria writes in connection with Astracommex’s submission of the Notice of the Non-
1730 Compliance with Document Production, dated 20 June 2024.

Following the Tribunal’s decision on Astracommex’s document requests, Celestria


produced 15 documents under Request No. 23, with additional 48 being submitted into the
privilege log.

Astracommex complains that the documents provided did not contain one very specific
1735 document, that it was specifically searching for, and alleges that Celestria engaged in unfair
behavior and decided to “conceal” said document.

Without prejudice to the existence and/or veracity of said document and any possible
applicable privilege, Celestria submits that document production in international arbitration is not
an exhaustive exercise. Parties are required to conduct a reasonable search, not a limitless one.
1740 Celestria conducted a reasonable search, which is proven by providing more than 300 documents
across all granted requests and over 200 documents being added to the Privilege Log. Thus,
Celestria complied with its obligations under PO2.

Additionally, the ICSID Arbitration Rules 2022, which govern these proceedings, do not
allow the Tribunal to draw adverse inferences. The Tribunal should therefore reject the request.

1745 Respectfully submitted,

CosmoLex Associates

71
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES
1750

In the arbitration proceeding between

1755 Astracommex Regional Satellite Communication Inc.


(Claimant)
and
The Republic of Celestria
(Respondent)
1760
ICSID Case No. ARB/22/99

PROCEDURAL ORDER NO. 3


1765

Members of the Tribunal


Mr. Jackson Cole, President of the Tribunal
Dr. Nika Havendale, Arbitrator
1770 Prof. Brynn Sterling, Arbitrator

Secretary of the Tribunal


Mr. Dapo Olasibi

1775
28 June 2024

72
1. Pursuant to ICSID Arbitration Rule 27, this third Procedural Order sets out the conduct of the
1780 proceedings of this arbitration.

2. Parties have agreed upon a Statement of Uncontested Facts, as produced below. The Tribunal
appreciates the effort made by the Parties to work together amicably to provide the Tribunal
with uncontested facts.

3. Upon consultation with the Parties on video conference held on 25 June 2024, the Parties
1785 agreed:

i. To conduct the proceedings in good faith - without any prejudice to the issue of third-party
funding raised by Celestria and the jurisdiction of the Tribunal.

ii. To limit the first phase of the proceedings to questions listed below addressing the
Tribunal’s jurisdiction, the request for security for costs, whether Celestria breached the
1790 BIT by way of expropriation, and whether the Tribunal can draw an adverse inference from
the alleged non-compliance with the document production and/or order the repetition of
the search.

iii. To limit themselves to one round of written submissions before the hearing as follows: the
Claimant shall file its Memorial on 11 September 2024 and the Respondent shall file its
1795 Counter-Memorial on 18 September 2024.

4. In their submissions and at the hearing to be held on 1-4 November 2024 in Berlin, the Parties
shall address the following issues:

i. Whether the Tribunal has jurisdiction ratione temporis under the BIT to hear the
Claimant’s claims;
1800 ii. Whether Marcial Ventures Ltd and Platonial Investments are third party funders and
whether the Tribunal should order security for costs;
iii. Whether the Respondent has breached Article VII of the BIT:
a. Whether the Respondent’s measures amount to creeping expropriation;
b. Whether the Respondent’s measures are justified under applicable international
1805 law; and

73
iv. Whether the Tribunal has the power to draw adverse inference from a non-compliance
with document production order and/or order Astracommex to repeat the search and
produce any newly identified responsible documents.

5. The Tribunal is aware that the various questions are closely connected to each other. Thus, the
1810 Parties are free to decide in which order they address the various issues.

6. No further questions going to the merits of the claims and jurisdiction of the Tribunal should
be addressed at this stage of the proceedings. Parties should not argue whether the Tribunal
should draw adverse inference in the present case – at this point the Tribunal is solely interested
in whether it has the power to do so.

1815

On behalf of the Tribunal,

_____________________
1820 Mr. Jackson Cole
President of the Tribunal
28 June 2024

74
STATEMENT OF UNCONTESTED FACTS
1825
1. The present proceeding results from a series of measures taken by several agencies of the
Republic of Celestria (“Celestria”) that allegedly affect the operation of Astracommex
Regional Satellite Communication Inc. (“Astracommex Regional”) on the territory of
Celestria.

1830 2. Celestria is a middle-income island nation with one principal island, twelve medium-sized
islands, and seventy-three smaller isles. Around sixty percent of its population resides in rural
and isolated areas. The nation’s key economic sectors include traditional manufacturing,
agriculture and fishing. Operating under a presidential system, Celestria elects its president
every five years by direct popular vote. In the 2010 election, the leader of the Celestria Unity
1835 Alliance (“CUA”), Mr. Andreas Skydocker, secured the presidency. The primary agenda of
his party focused on boosting the economy through digitalization and channeling both public
and private investments towards the development of digital infrastructures.

3. Celestria is located in the Astral Archipelago Region. It shares a land border with the Kingdom
of Cosmosis (“Cosmosis”) and is encircled by other states, including the Kingdom of
1840 Nebuland (“Nebuland”), from which it is separated by sea. Cosmosis is a developed state
renowned for its globally dominant aerospace and space sector. Cosmosis owns an overseas
space center in the equatorial region as one of its major research and launching sites. Nebuland
is a developed State with an advanced tech industry, characterized by its robust ecosystem of
start-ups, established tech giants, and research institutions.

1845 4. Celestria, Nebuland, and Cosmosis were parties to a Free Trade Agreement (the “FTA”) that
entered into force on 2 December 2003.

5. Astracommex Regional is a corporation established in 2015 under the laws of Nebuland with
its principal place of business in Stelaria, the capital of Nebuland. Astracommex Regional
operates as a wholly-owned subsidiary with all of its shares held by its parent company,
1850 Astracommex Global Satellite Communication Inc. (“Astracommex Global”), which is also
organized under the laws of Nebuland. Astracommex Regional was established with the aim
of managing and overseeing the operations in the Astral Archipelago Region’s nations outside
of Nebuland.

75
6. Mr. Jeffrey Myskin, the CEO of both Astracommex Regional and Astracommex Global, holds
1855 a Bachelor of Arts in Physics and a Master of Science in Aerospace Engineering from
Nebuland Institute of Technology. Following his graduation, he and his university friends
started a space lab in 2008 where they innovated and patented several space telecommunication
technologies including advanced transmitters and antennas. The team’s effort led to the
founding of Astracommex Global in 2011, with the ambition to create a global high-speed,
1860 high-quality and affordable space communication network. The network aims to provide
internet connectivity in areas typically unserved or underserved by traditional terrestrial
infrastructure, such as rural regions, remote islands, ships, and aircraft.

7. In the summer of 2014, Astracommex Global introduced its groundbreaking low-Earth-orbit


(“LEO”) satellite mega-constellation concept and swiftly gathered significant venture capital
1865 investments from Marcial Ventures Ltd (“Marcial”) and Platonial Investments (“Platonial”).
Marcial and Platonial together hold a 25% equity stake in Astracommex Global.

8. Concurrently, under the leadership of President Skydocker, Celestria was vigorously


advancing its digitalization initiatives. A notable step in this direction was Celestria’s
application to the regional development bank on 1 January 2015, for funding of a digital health
1870 project, which received approval on 1 June 2015. The Digital Health Project aimed to create
an integrated digital health information system across Celestria. Its primary goal was to bridge
the information gaps between medical institutions on the various islands, thereby enhancing
the quality of medical services available to the Celestrian population. The Project also involved
collaboration with private sector companies for software provision, network connectivity, and
1875 other technical support, stimulating economic growth. The health data collected in the Digital
Health Project, with the consent of individual patients, was set to be utilized by partnering
pharmaceutical companies and medical device manufacturers. The Project was promoted by
the Skydocker administration as a prime example of how digital infrastructure can facilitate
the growth of the national economy as a whole.

1880 9. On 1 January 2016, Celestria launched a Rural Digitalization Fund (the “RDF”). The primary
aim of the RDF was to bridge the digital divide in Celestria, ensuring that communities and
small businesses in rural areas had access to the same quality of internet communication
services as urban areas. Celestria allocated to the RDF an amount of USD 1 billion over a

76
period of ten years to bring fixed broadband service to unserved and underserved areas in
1885 Celestria.

10. The RDF, jointly overseen by Celestria’s National Frequency Agency (the “NFA”) and the
Rural Development Agency (the “RDA”), implemented a transparent and inclusive application
procedure. It invited bids from both domestic and foreign telecommunications and internet
service providers. Successful bidders were allocated a portion of the USD 1 billion fund,
1890 proportionate to their project’s scope, through a tripartite contract involving both the RDA and
NFA. Payments from the fund to the winning bidder were structured to occur annually,
following the relevant contract’s activation.

11. On 15 February 2016, Astracommex Regional applied to the RDF with its LEO satellite mega-
constellation architecture named the Astra System. The application detailed a network of 5000
1895 satellites, set to operate at altitudes of 400, 450, 500 and 600 kilometers. By the time of the
application, Astracommex Regional had launched 100 satellites from the Cosmosis overseas
space center that operate at an altitude of 400km and secured a launch agreement for another
1400 satellites from the same facility by 1 October 2018.

12. On 1 August 2016, the NFA and the RDA announced the successful applicants for the RDF
1900 funding. Among these, Astracommex Regional was selected as one of the three awardees,
alongside two domestic terrestrial telecommunication companies, using optical fibers and 5G
towers. Astracommex Regional was the only successful bidder relying on a satellite mega-
constellation architecture.

13. Subsequently, on 1 October 2016, Astracommex Regional entered into a Rural Digital Fund
1905 and Frequency Agreement (the “RDF Agreement”) with the NFA and the RDA. As stipulated
in the RDF Agreement, Astracommex was granted the rights to utilize specific frequency
spectrums within the allocated Ka-bands over the territory of Celestria and 500 million USD
dollars. The RDF Agreement, set for a duration of ten years, went into effect immediately on
the date of its signing.

1910 14. Despite the major progress made in the digitalization agenda of the Skydocker administration,
the Government’s support faced growing challenges due to the increasingly apparent impacts
of climate change on Celestria. As an insular State country with low elevation compared to its
neighbors, Celestria is particularly susceptible to the effects of climate change and natural

77
disasters. Since the summer of 2013, the frequency of tropical storms, tsunamis and extreme
1915 weather events in Celestria has notably increased.

15. As a result, climate-driven migration escalated, with many of Celestria’s residents seeking
refuge in the neighboring, well-developed state of Cosmosis. The level of migration reached a
critical point in the summer of 2016, following a devastating tropical storm that wreaked havoc
on Celestria’s coastal areas. In response to this crisis, on 15 October 2016, Cosmosis
1920 implemented stringent migration policies. These new regulations categorically denied asylum
to Celestrian residents displaced by natural disasters and the effects of climate change. On the
same day, during a press conference, the Prime Minister of Cosmosis publicly condemned
Celestria for its failure to adequately protect its citizens from the impact of natural disasters.

16. On 30 October 2016, Celestria’s Ministry of Foreign Affairs delivered a note verbale to
1925 Cosmosis’ embassy in Celestria, stating in relevant part:
Celestria hereby expresses its formal objection to the recent migration policies instituted
by Cosmosis. These policies, which discriminate against Celestrian nationals suffering the
consequences of climate change, are of great concern. It is imperative to recognize that
Cosmosis has been the leading global emitter of carbon and greenhouse gas since its
1930 industrial revolution in the last century. In light of this, Celestria urges Cosmosis not to
shrink its international responsibilities pertaining to climate change.

17. The tensions continued to escalate. On 1 November 2016, Cosmosis made a highly symbolic
request for the return of Yorkie, an Astrain elephant native to Cosmosis. This species, notably
sensitive to climate change, had been gifted to the national zoo of Celestria as a token of their
1935 once-amiable relationship. Celestria, however, denied the request. The denial to repatriate
Yorkie and the series of events leading to this decision, was portrayed in the media as the
“Yorkie Crisis.” This incident sparked major demonstrations outside the Celestrian embassy
in Cosmosis’ capital.

18. On 1 January 2017, following the Yorkie crisis, the Prime Minister of Cosmosis decided to
1940 end its diplomatic relationship with Celestria.

19. The following day, Cosmosis terminated the FTA in accordance with its article 15 procedure.
The FTA was no longer effective to Cosmosis, Celestria and Nebuland.

20. On the same day, the overseas space center of Cosmosis announced the termination of its
launch service contract with Astracommex Regional, citing impossibility of performance. As

78
1945 part of this termination, the space center compensated Astracommex Regional with liquidated
damages.

21. By 2 January 2017, Astracommex Regional had successfully launched 250 satellites into outer
space, and subsequently deployed in the planned orbits. Of these, 100 were positioned at an
altitude of 400 kilometers, while the remaining 150 orbited at an altitude of 450 kilometers. To
1950 fully deploy the Astra System, an additional 4750 satellites were required to be positioned
across orbits at altitudes of 450, 500, and 600 kilometers.

22. On 16 January 2018, Astracommex Regional succeeded in securing alternative launch sites.
The adjustment, however, resulted in a one-year delay in the original launch schedule.
According to the revised plan, the Astra System aimed to deploy satellites in phases: 500 by 1
1955 October 2018; 1500 by 1 October 2019; 2500 by 1 October 2020; 3500 by 1 October 2021;
and a total of 5000 satellites by 1 October 2022. Astracommex Regional’s inability to meet the
initial interim milestone of the RDF Agreement led to a one-year suspension of payments.
Subsequently, payments resumed in 2019, and the milestone requirements in the RDF
Agreement were modified to align with the new launch schedule.

1960 23. On 15 August 2019, Celestria suffered an almost complete internet blackout caused by an
underwater volcanic eruption off its eastern coast, which severed its main subsea internet cable.
The eruption severely impacted the Digital Health Project, which was in trial on ten islands, as
medical centers couldn’t access vital online patient records and had no offline backups.
Immediately after, Celestria requested satellite communication support from Astracommex
1965 Regional.

24. On the following day, Astracommex Regional distributed user antennas to the affected medical
facilities and activated its network. At that moment, the Astra System had 1400 satellites in
operation. The network performance was poor. Users experienced substantial latency and
signal attenuations, resulting in about 80% of the medical facilities being unable to access
1970 patient medical records.

25. On 18 August 2019, Mr. Myskin explained to the press that the Astra System was not fully
operational due to delayed launches. Mr. Myskin reassured that the service would meet its
promised quality once it reached 1500 satellites in operation. This situation led to a decline in
public confidence in the CUA’s digitalization efforts, and both Astracommex and the Digital

79
1975 Health Project were heavily criticized in the media for their roles in this crisis. The support for
CUA plummeted substantially as indicated by newspaper polls conducted in September 2019.

26. On 30 September 2019, the Astra System accomplished a significant milestone by successfully
deploying 1500 satellite into orbit and officially activating its network. This marked the
commencement of their Internet service offering in both Nebuland and Celestria.
1980 Astracommex Regional is in charge of managing client subscriptions and service delivery from
Celestria, whereas Astracommex Global took on similar responsibilities for the Nebuland
market. The users reported to experience bearable latency while using Astracommex’s service.
Astracommex assured its users that once there are cumulatively 2500 satellites in the Astra
System, they will activate inter-satellite links and their broadband capacity will be able to
1985 surpass that of most ground-based networks.

27. Meanwhile, newspaper surveys from October 2019 indicated a continuing decline in support
of the CUA. In this time of crisis, the Green Party, long overshadowed by the CUA’s dazzle,
found its voice. The Green Party was led by Ms. Billie Ruckelshaus, a civil rights activist, who
was the prior high-level administrator of Celestria’s Environmental Protection Agency (the
1990 “EPA”). Her abrupt resignation in November 2015, triggered by budget cut to the EPA in favor
of funding digitalization initiatives (primarily the RDF) led by the RDA, marked a turning
point. In October 2016, she founded the Green Party, gradually attracting support from
environmental advocates. The party’s popularity saw a significant surge during the 2017
Yorkie crisis, as public opinion increasingly criticized the CUA’s apparent negligence of
1995 climate change and migration issues.

28. On 15 January 2020, the Green Party secured a sweeping majority in the election and Ms.
Ruckelshaus became the new president. She immediately issued a Presidential Order outlining
ambitious environmental initiatives. These included the development of disaster alert systems
along coastlines and islands, transitioning 50% of energy sources to renewable forms by 2028,
2000 and attaining carbon neutrality by 2040. To further these goals, the government introduced
grants to encourage innovations in energy efficiency. As a result of these incentive-based
strategies, there was a notable increase in government expenditure.

29. On 1 April 2020, the Green Party enacted the National Environmental Protection Act (the
“NEPA”) that requires every governmental agency to take full account of environmental

80
2005 impact assessments when determining whether the planned activities may proceed. In the
meantime, the RDA’s high-level administrators were reappointed, and the RDA was
restructured and formed a joint force with the EPA for sustainable development.

30. On 15 May 2020, the Celestrian Space Agency released a study in the Celestria Journal of
Astrophysics highlighting the negative impact of the Astracommex Satellites on astronomy.
2010 Subsequently, on 16 May 2020, an investigation was launched into the Astra System under the
NEPA. The Celestrian Space Agency, responsible for overseeing civil space programs,
aeronautic research, and space research, took the lead in the investigation.

31. On 20 May 2020, Celestria’s largest non-profit amateur astronomy group published an open
letter in Astra Nature Astronomy. This letter, calling for an immediate halt to the satellite light
2015 pollution caused by satellite mega-constellations like the Astra System, was also forwarded to
the Celestrian Space Agency on the same day.

32. On 1 June 2020, the Celestrian Space Agency, under the mandate of the NEPA, required
Astracommex Regional to coordinate with both the Celestrian Space Agency and the amateur
astronomy community.35 Pending the identification and implementation of these mitigating
2020 solutions, the Space Agency put a temporary halt to Astracommex Regional’s uplink and
downlink communications near its ten radio observatories. Additionally, it designated radio
silence zones in regions densely populated by amateur astronomers. As a result of these
restrictions, the communication reach of the Astra System was effectively reduced to covering
only 40 percent of Celestria’s territory.

2025 33. On 15 July 2020, Astracommex Regional introduced a proposal to the Celestrian Space Agency
to mitigate the astronomical impact. It proposed (i) to paint the upcoming satellites with a less
reflective color and fitted visors to reduce reflection; and (ii) to emit narrower transmission
beams, thus reducing radio frequency interference.

34. On 15 August 2020, the Celestrian Space Agency replied that the Agency would lift the
2030 operational restrictions, contingent on the successful implementation of these measures.

35
The Celestrian Space Agency is a civil research and development agency of the Celestrian government. While the
Celestrian Space Agency does not directly regulate commercial space programs, Celestrian domestic law empowers
the Space Agency to establish radio silence zones and implement additional measures to ensure commercial space
uses do not interfere with civil research endeavors. The jurisdiction of the Celestrian Space Agency is not challenged
by the Claimant before both domestic courts and the current arbitral tribunal.

81
However, these adaptations necessitated a shift to a different frequency spectrum within the
Ku-bands for transmission purposes. This new spectrum fell outside of the original range
authorized for Astracommex Regional’s operations in Celestria.

35. On 5 September 2020, Astracommex Regional applied to the NFA for the required Ku-band
2035 frequencies, accompanied by relevant technical documentation related to telecommunications.

36. On 1 October 2020, a study conducted by a laboratory sponsored by the EPA (see above)
indicated potential unintended atmospheric impacts from Astracommex Regional’s LEO
mega-constellation. By 1 October 2020, 2500 satellites were deployed successfully in the Astra
System.

2040 37. On 2 October 2020, the NFA requested additional documentation from Astracommex Regional
to specifically address these atmospheric concerns. On 15 October 2020, Astracommex
Regional responded to the NFA, declining to provide the requested supplementary information.
On 15 December 2020, the NFA rejected Astracommex Regional’s application to Ku-band
frequencies on the basis of the NEPA.

2045 38. On 1 January 2021, one of Astracommex Regional’s satellites, AS100, collided with a cube
satellite (cubesat) that wandered around the adjacent orbit on a crossed orbital plate. The cube
satellite was run by Valinor, a private company, in partnership with Celestria’s Department of
Defense (“DoD”). The cubesat was not equipped with any collision avoidance system and was
smashed into small debris upon collision. AS100 was partially damaged – but both its
2050 Telemetry, Tracking, and Command (TT&C) system and its communication system ceased to
function. The data up until the impact moment indicated an interference to onboard computing
system by extreme radiation. This record was transmitted and stored in the Astra System, and
subsequently used by Astracommex’s engineers to assess the event and prepare software
updates for existing and future Astra satellites.

2055 39. On 5 January 2021, the DoD initiated an investigation and ordered Astracommex Regional to
suspend all satellite communications within the territory of Celestria.36

36
The DoD is charged by Celestrian domestic law with coordinating and supervising all agencies and functions of
the Celestrian government directly related to national security.

82
40. On 1 February 2021, after several months of negotiations, Nebuland and Celestria concluded
an Agreement on reciprocal promotion and protection of investments that entered into force
on the same day.

2060 41. On 1 March 2021, the DoD issued a directive to Astracommex, mandating the repositioning of
all its satellites from their current 400km altitude orbits to new orbits below 350 kilometers.
The DoD instructed that all satellite communications within the territory of Celestria should
remain suspended until these orbital adjustments are fully executed.

42. The following day, Astracommex Regional immediately objected to the above order and
2065 submitted a request to the DoD to reconsider its decision, on the basis that the change of orbits
was technically and economically difficult for the Astra System to achieve. Astracommex
Regional estimated that moving the satellites to new orbits below 350 kilometers will incur an
additional cost of USD 1 billion and will require Astracommex Regional to apply for new
frequencies due to the change of its network configuration.

2070 43. On 1 April 2021, the DoD refused to change its decision. In response, Astracommex Regional
initiated proceedings against the DoD in the domestic courts in accordance with Celestrian
Administrative Law.

44. On 1 October 2021, the NFA and the RDA suspended the annual payments under the RDF
Agreement according to Article 7(1) of the RDF Agreement. Since 1 October 2020,
2075 Astracommex Regional didn’t launch any new satellites into the Astra System.

45. On 15 October 2021, Astracommex Regional initiated proceedings against the DoD, the RDA,
the NFA and the Space Agency in the domestic courts. The domestic litigations were
consolidated on 1 November 2021. The Supreme Court of Celestria rejected all of
Astracommex Regional’s claims against the DoD, the NFA, the RDA and the Space Agency
2080 on 1 April 2022 and ordered it to bear the costs of the proceedings. To date, Astracommex
Regional failed to comply with the cost order.

46. Subsequently, Astracommex approached Celestria with a request to commence conciliation


proceedings under the ICSID Convention. Celestria declined the request, prompting
Astracommex to initiate arbitration proceedings on 9 September 2022. The Request for
2085 Arbitration was registered by ICSID on 25 September 2022.

83
47. In the present proceedings, Celestria produced documents under all requests that were granted
(partially or in full) by the Tribunal. Astracommex Regional never objected to any of the
documents produced, nor to the sufficiency and reasonableness of the search conducted by
Celestria, apart from the incident report of AS100 collision. Celestria did not include the
2090 incident report of AS100 collision in their privilege and confidentiality log.

48. Celestria, Cosmosis, and Nebuland are parties to the Outer Space Treaty of 1967, the
Convention on Registration of Objects Launched into Outer Space of 1974, and United Nations
Framework Convention on Climate Change of 1994 at all relevant times. Celestria, Cosmosis,
and Nebuland are United Nation member countries, and International Telecommunication
2095 Union member countries at all relevant times.

84
AGREEMENT ON RECIPROCAL PROMOTION AND PROTECTION OF
INVESTMENTS BETWEEN THE KINGDOM OF NEBULAND AND THE REPUBLIC
OF CELESTRIA
2100 The Kingdom of Nebuland and the Republic of Celestria,
hereinafter referred to as the Contracting Parties,

Desiring to strengthen their traditional ties of friendship and to extend and intensify economic
relations between them by creating conditions with a view to attract and promote responsible
2105 foreign investment of the Contracting Parties in their respective territories that contribute to
sustainable economic development;

Recognizing that fostering an open and transparent policy environment and protecting investments
of investors of one Contracting Party in the territory of the other Contracting Party are conducive
2110 to the stimulation of mutually beneficial economic activity and intensification of economic
cooperation;

Reaffirming their commitment to sustainable development and to enhancing the contribution of


international trade and investment to sustainable development;
2115
Recognizing the importance of equality between men and women when formulating, implementing
and reviewing measures within the field of international trade and investment;

Considering that these objectives can be achieved without compromising the right of the
2120 Contracting Parties to regulate investment within their territories through measures necessary to
achieve legitimate policy objectives, such as the protection of public health, safety, environment,
public morals, labor rights, animal welfare, social or consumer protection or for prudential
financial reasons;

2125 Have agreed as follows:

Article I Definitions
1. For the purposes of this Agreement:

(a) “investment” means every kind of asset that has the characteristics of an investment, which
2130 includes a certain duration, the commitment of capital or other resources, the expectation
of gain or profit, and the assumption of risk. Forms that an investment may take include:
i. movable and immovable property as well as any other property rights in rem in
respect of every kind of asset, such as mortgages, liens and pledges;
ii. rights derived from shares, bonds and other kinds of interests in companies and joint
2135 ventures;

85
iii. claims to money, to other assets or to any contractual performance having an
economic value;
iv. rights in the field of intellectual property, technical processes, goodwill and know-
how;
2140 v. rights granted under public law or under contract, including rights to prospect,
explore, extract and exploit natural resources.
(b) “investor” means with regard to either Contracting Party:
i. any natural person having the nationality of that Contracting Party under its
applicable law;
2145 ii. any legal person constituted under the law of that Contracting Party whose shares in
the company exceed 50 per cent; or
iii. any legal person that is constituted under the law of that Contracting Party and is
directly or indirectly owned or controlled by a natural person as defined in (i) or by
a legal person as defined in (ii).
2150 (c) “territory” means the territory of the Contracting Party concerned, including its territorial
sea and any area beyond the territorial sea of the Party within which it exercises jurisdiction
or sovereign rights in accordance with international law.
(d) “environmental impact assessment” means the process used to predict the environmental
consequences (positive or negative) of a plan, policy, program or project prior to moving
2155 forward with the proposed action.

2. [intentionally omitted]

Article II Scope of application


This Agreement shall apply to legal disputes in relation to investments that existed at the time of
2160 entry into force as well as to investments made or acquired thereafter.

Article III Favorable conditions for investment

1. Each Contracting Party shall, within the framework of its laws and regulations and in
accordance with its international obligations, promote economic cooperation and encourage
2165 the creation of favorable conditions for responsible investment in its territory that contribute
to sustainable economic development.

86
2. Subject to its right to exercise powers conferred by its laws and regulations, each Contracting
Party shall admit foreign investments.
3. The Contracting Parties strive to strengthen the promotion and facilitation of investments that
2170 contribute to sustainable development, including but not limited through regular consultations
between investment promotion and facilitation agencies and the exchange of information
regarding investment opportunities.

Article V Investment and environment


2175 1. The Contracting Parties recognize that their respective environmental laws policies and
multilateral environmental agreements to which they are both party, play an important role in
protecting the environment.
2. The Contracting Parties recognize that each Party retains the right to exercise discretion with
respect to regulatory, compliance, investigatory, and prosecutorial matters and to make
2180 decisions regarding the allocation of resources to enforcement with respect to other
environmental matters determined to have higher priorities.
3. The Contracting Parties recognize that each Party undertakes to respect and observe the social
responsibility owed to the other Party.
4. Nothing in this Agreement shall be constructed to prevent a Party from adopting, maintaining,
2185 or enforcing, in a non-discriminatory manner, any measure otherwise consistent with this
Agreement that it considers appropriate to ensure that investment activity in its territory is
undertaken in a manner sensitive to environmental and social concerns.
5. Reaffirming Principle 15 of the Rio Declaration on Environment and Development of 1992,
investors, their investment and host state authorities shall apply the precautionary principle to
2190 their environmental impact assessment and to decisions taken in relation to a proposed
investment, including any necessary mitigation or alternative approaches of the precautionary
principle by investors and investments shall be described in the environmental impact
assessment they undertake.

2195 Article VI Non-discriminatory treatment

1. Each Contracting Party shall accord to an investor of the other Contracting Party and to an
investment of an investor of the other Contracting Party, treatment no less favorable than the

87
treatment it accords, in like situations, to its own investors and to their investments with respect
to conduct, operation, management, maintenance, use, enjoyment and sale or disposal of their
2200 investments in its territory.
2. Each Contracting Party shall accord to an investor of the other Contracting Party and/or to an
investment of an investor of the other Contracting Party, treatment no less favorable than the
treatment it accords in like situations, to investors of a third country and to their investments
with respect to the conduct, operation, management, maintenance, use, enjoyment and sale or
2205 disposal of their investments in its territory.
3. Substantive obligations in other international investment and trade agreements do not in
themselves constitute “treatment”, and thus cannot give rise to a breach of paragraph 2 of this
Article, absent measures adopted or maintained by a Contracting Party pursuant to those
obligations. Furthermore, the “treatment” referred to in paragraph 2 of this Article does not
2210 include procedures for the resolution of investment disputes between investors and States
provided for in other international investment and trade agreements.

Article VII Expropriation

1. Neither Contracting Party shall expropriate or nationalize a covered investment either directly
2215 or indirectly through measure tantamount to expropriation or nationalization, unless the
following conditions are complied with:
(a) the measure is taken for a public purpose;
(b) the measure is taken under due process of law;
(c) the measure is taken in a non-discriminatory manner; and
2220 (d) the measure is taken against prompt, adequate and effective compensation.
2. Direct expropriation occurs when an investment is nationalized or otherwise directly taken
through formal transfer of title or outright seizure.
3. Indirect expropriation occurs if a measure or a series of measures of a Contracting Party has
an effect tantamount to direct expropriation, in that it substantially deprives the investor of the
2225 economic value of its investment, or of the fundamental attributes of property in its investment,
without formal transfer of title or outright seizure.

88
Article VIII Subrogation
If the investment of an investor of a Contracting Party is insured against noncommercial risks or
2230 otherwise gives rise to payment of indemnification in respect of such investment under a system
established by law, regulation or government contract, any subrogation of the insurer or re-insurer
or agency designated by that Contracting Party to the rights of the said investor pursuant to the
terms of such insurance or under any other indemnity given shall be recognized by the other
Contracting Party.
2235
Article IX Alternative dispute resolution

1. Any dispute should, as far as possible, be settled amicably through negotiations, conciliation
or mediation. A disputing party shall give favorable consideration to a request for negotiations,
conciliation or mediation by the other disputing party.
2240 2. Mutually agreed solutions shall be made publicly available. However, the version disclosed to
the public may not contain any information that a disputing party has designated as confidential.

Article X Submission of a claim

1. If a request for alternative dispute resolutions has been submitted in accordance with Article
2245 IX and where the request does not result in a resolution of the claim within three months from
the date of the request, the investor may submit a claim under the Convention on the Settlement
of Investment Disputes between States and Nationals of Other States of 18 March 1965 (ICSID
Convention).
2. The responding Contracting Party hereby consents to the submission of a claim as provided
2250 under this Article.

Article XI Constitution of the tribunal


The Tribunal shall be constituted in accordance with Article 37(2)(b) of the ICSID Convention.

2255 Article XII Entry into force, duration and termination

1. The present Agreement shall enter into force on the date of its signature by both Contracting
Parties.

89
2. Unless notice of termination has been given by either Contracting Party at least six months
before the date of its expiry, the present Agreement shall be extended tacitly for periods of five
2260 years, whereby each Contracting Party reserves the right to terminate the Agreement upon
notice of at least six months before the date of expiry of the current period of validity.

Article XIII Relationship with other treaties


This Treaty shall not alter the rights and obligations of the Contracting Parties which arise from
2265 other agreements compatible with this Treaty and which do not affect the enjoyment by the other
Party of its rights or the performance of its obligations under this Treaty.

DONE in two originals on 1 February 2021, each in English

2270 For Nebuland

Mr. Janis Solaris


2275 Minister of Justice

For Celestria

2280

Ms. Stella Mercury


Minister of Foreign Affairs

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