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Akfel Affiliates Awarded $500M Plus Interest in Claim Against Turkey

In the wake of political unrest in Turkey in 2016, Singapore-based Akfel Commodities Pte Ltd and Netherlands-based iSystems Global BV, both affiliates of parent company Akfel Group, alleged systematic expropriation of their Turkish investments. These assets spanned natural gas import and wholesale businesses, renewable energy generation, power trading and industrial and engineering operations. The claimants launched arbitration under the Singapore-Turkey and Netherlands-Turkey bilateral investment treaties, alleging indirect expropriation, unfair and inequitable treatment and other breaches. They turned to FTI Consulting and its subsidiary Compass Lexecon for sophisticated gas markets and valuation expertise before the International Centre of Settlement of Investments Disputes (‘ICSID’) to give expert evidence quantifying their losses across multiple interconnected entities and jurisdictions.

Our Impact

In July 2025, an ICSID tribunal reportedly ordered Turkey to pay the affiliates $495.5 million plus interest and costs, confirming breaches of investment treaty protections.
Experts James Nicholson from FTI Consulting and Boaz Moselle from Compass Lexecon presented their reasoning and conclusions to the tribunal and withstood cross-examination by Turkey’s counsel, leading the tribunal reportedly to adopt their conclusions substantially in awarding damages.

Our Role

FTI Consulting applied tailored valuation methodologies to quantify losses across the affiliates’ 11 interconnected companies, spanning several geographies, multiple currencies, and complex corporate structures.
Our experts constructed sophisticated multicurrency financial models, building robust calculations designed to withstand rigorous arbitration scrutiny and expert challenge — ensuring accuracy across complex cross-border investment structures.
The team worked closely with Akfel representatives to identify the appropriate financial and other information required to perform its loss quantification, and integrated specialised market intelligence into valuation analysis using Compass Lexecon’s long-term gas price projections into the assessment of the value of expropriated natural gas import and wholesale entities.