- 32 view, Ukraine by insisting on some core principles that would govern the arbitration and by not
submitting any concrete suggestions for the text of an arbitration agreement while refusing the
Russian Federation’s proposals did not genuinely attempt to organize the arbitration pursuant to
Article 24 of the ICSFT.
73. The Russian Federation maintains that Article 24, paragraph 1, of the ICSFT requires the
Parties to negotiate with a view to “agree on the organization of the arbitration” and that
accordingly they must decide on the composition of the tribunal, the law applicable, as well as on
administrative matters. The Respondent argues that the Parties were in agreement with regard to
most issues concerning the organization of the arbitration. It asserts that negotiations with regard to
the arbitration had not reached a deadlock. In the Russian Federation’s view, the procedural
precondition to submit the Parties’ dispute to arbitration set forth in Article 24 of the ICSFT has not
been fulfilled.
*
74. Ukraine points out that it submitted to the Russian Federation a Note Verbale dated
19 April 2016 which contained a direct request to have recourse to arbitration with a view to
settling their dispute. Contrary to the Russian Federation’s argument, Ukraine maintains that its
later suggestion to constitute an ad hoc chamber of the Court was only an alternative option on
which it did not insist.
75. Ukraine argues that the Parties were unable to agree on the organization of the arbitration
within the six-month period referred to in Article 24, paragraph 1, of the ICSFT. It notes that the
Russian Federation responded to its request for arbitration more than two months after receiving it
and only offered to meet to discuss the organization of the arbitration a further month later. Ukraine
maintains moreover that at the first meeting the Russian Federation did not address Ukraine’s
views on the organization of the arbitration. The Applicant asserts that, when negotiations with
respect to the organization of the arbitration were discontinued, the Parties had only agreed to
discuss the details of the arbitration further and to consider each other’s positions, and had not
reached any agreement on the actual organization of the arbitration. Ukraine submits that it
genuinely attempted to reach an agreement on the organization of the arbitration within the
requisite period.
*
*
76. The Court recalls that, nearly two years after the start of negotiations between the Parties
over the dispute, Ukraine sent on 19 April 2016 a Note Verbale in which it stated that those
negotiations had “failed” and that, “pursuant to Article 24, paragraph 1 of the Financing Terrorism
Convention, [it] request[ed] the Russian Federation to submit the dispute to arbitration under terms