Peaceful settlement of inter-state energy disputes: applicable law, defence arguments, and remedies in the ICC arbitration between Iraq and Turkey.

The article focuses on the International Chamber of Commerce (ICC) arbitration between the Republic of Iraq and the Republic of Turkey concerning disputes under the Iraq–Turkey Pipeline Agreements (ITP Agreements) related to the supply and transportation of crude oil. The Tribunal's 2023 unanimous award addressed complex issues including the applicable law (distinguishing between French law as lex arbitri and international law governing the treaty), breaches by Turkey in exporting Kurdish Regional Government (KRG) oil without Iraqi federal consent, Iraq's failure to meet minimum throughput obligations excused partially by force majeure, and the rejection of Turkey's defenses based on exceptio non adimpleti contractus, rebus sic stantibus, and an alleged jus cogens obligation to prevent genocide. The Tribunal ordered Turkey to pay Iraq nearly USD 1.5 billion in damages, while also recognizing Iraq's contributory fault due to the KRG's role in the breach. The award highlights significant legal principles in inter-State energy disputes, including treaty interpretation, state responsibility, and remedies, and underscores ongoing challenges in the peaceful settlement of international energy conflicts amid internal political divisions within Iraq.