The Swedish Court of Appeal has fully rejected all claims brought by Russian telecommunications company MTS against Turkmenistan, upholding an international arbitration ruling and affirming that Turkmenistan’s actions complied with international law, according to the Ministry of Foreign Affairs of Turkmenistan.

In 2018, MTS initiated proceedings against Turkmenistan at the International Centre for Settlement of Investment Disputes (ICSID), arguing that its contract with the Turkmen side should have been extended.

In 2023, an ICSID tribunal dismissed all claims by MTS, ruling that the company had no legal grounds to expect an extension of its contract. The tribunal also found that Turkmenistan had not engaged in any unlawful conduct and awarded the country over $11 million in legal and arbitration costs.

Following the arbitration decision, MTS sought to overturn the ruling in Sweden, where the case was heard. On June 27, 2025, the Svea Court of Appeal denied the company’s petition and ordered MTS to pay an additional €589,000 to Turkmenistan to cover court expenses.

The Swedish court’s ruling is final and not subject to appeal. Turkmenistan’s Foreign Ministry stated that the decisions by both international and national legal bodies confirmed the legitimacy of the country’s position and its adherence to the principles of international economic cooperation.