In a significant decision for international arbitration and sovereign risk, the Federal Court of Australia has confirmed that the Kingdom of Spain waived its foreign State immunity in proceedings seeking recognition and enforcement of arbitral awards rendered under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention).
On 29 August 2025, the Federal Court of Australian handed down judgment in Blasket Renewable Investments LLC v Kingdom of Spain [2025] FCA 1028. Justice Stewart held that Spain could not rely on foreign State immunity to resist enforcement of four ICSID awards in Australia, notwithstanding arguments based on European Union law, public international law and constitutional principles.
The decision reinforces Australia’s position as a pro-enforcement jurisdiction for investment treaty awards and provides important clarity for investors, assignees and States alike.
The Court’s reasoning also sits alongside the Federal Court’s earlier consideration of sovereign immunity in the context of non-ICSID awards under the New York Convention, including in CCDM Holdings, LLC v Republic of India, where the Court examined whether India’s status as a Convention State amounted to a waiver of immunity for enforcement proceedings in Australia (see our previous article Federal Court of Australia affirms jurisdiction to enforce arbitral awards against foreign States party to the New York Convention, 27 October 2023).
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