SLOVENIA Law and Practice Contributed by: Vesna Cukrov and Veronika Cukrov, Law Firm Cukrov (Odvetniška družba Cukrov o.p., d.o.o.)
1. General 1.1 Prevalence of Arbitration
1.2 Key Industries In Slovenia, arbitration plays an important role primar - ily in the resolution of disputes arising in the energy and infrastructure sectors. In the energy sector, this is illustrated by the arbitration between Holding Slov - enske elektrarne (HSE) and General Electric Power, the legal successor to Alstom. In the infrastructure sector, an arbitration is expected to arise with the Turkish company Yapi Merkezi, which acted as the main contractor for the construction of the second track of the Divača–Koper railway line. The company is expected to seek compensation from the Republic of Slovenia for alleged damages, with publicly avail - able information indicating that the claim may amount to approximately EUR330 million. The energy sector has also generated the most vis - ible investment arbitration activity involving Slove - nia, most recently the ICSID award of 7 July 2026 in Ascent Resources Plc and Ascent Slovenia Ltd v Republic of Slovenia (ICSID Case No ARB/22/21). The dispute concerned the Petišovci oil and gas field in the Pomurje region. Ascent Resources held a 75% inter - est in a joint venture with the Slovenian concession - aire Geoenergo d.o.o. The claimants’ business plan relied on a significant increase in production through low-volume hydraulic stimulation of wells, a technique they characterised as distinct from large-scale frack - ing. That distinction became central to their case: the investment, they argued, had been caught by a pro - hibition designed for a different technology. The claimants alleged three breaches: • indirect expropriation; • breach of the fair and equitable treatment stand - ard, or the minimum standard of treatment, includ - ing denial of justice; and • arbitrary, unreasonable or discriminatory measures. The claimants contended that two state measures breached Slovenia’s obligations: the March 2019 decision of the Slovenian Environment Agency requir - ing an environmental impact assessment before any stimulation-based extraction could proceed, upheld by the competent ministry and by the Administrative Court in June 2020; and the May 2022 amendment to the Mining Act (ZRud-1D) imposing a nationwide ban
International arbitration is established in Slovenia but cannot be considered the predominant method of dispute resolution. Domestic parties still primar - ily rely on litigation before state courts, particularly in purely domestic disputes. Arbitration is used mainly in commercial disputes, particularly in sectors such as construction, energy, real estate and investment, especially where contracts involve higher values or an international element. A recent illustration from the energy sector is the dis - pute between Ascent Slovenia Ltd and Geoenergo d.o.o., joint venture partners in the development of the Petišovci oil and gas field, resolved before the Ljubljana Chamber of Commerce and Industry’s Permanent Court of Arbitration. The tribunal upheld monetary claims exceeding Geoenergo’s financial capacity, leading to its insolvency in January 2024. The case shows that domestic institutional arbitration continues to play a practical role in high-value energy joint venture disputes, even where the same underly - ing project is simultaneously the subject of investment treaty arbitration. International arbitration is used primarily on the basis of arbitration agreements contained in international commercial contracts. Slovenian companies most commonly agree to arbitrate disputes arising out of cross-border commercial relationships before estab - lished international arbitral institutions. An important aspect of arbitration practice in Slove - nia is also the recognition and enforcement of foreign arbitral awards. Slovenia is a party to the 1958 Con - vention on the Recognition and Enforcement of For - eign Arbitral Awards (the “New York Convention”), and foreign arbitral awards are recognised and enforced in accordance with the Slovenian Arbitration Act ( Zakon o arbitraži ; ZArbit) and the Convention. Under the Arbitration Act, the Ljubljana District Court ( Okrožno sodišče v Ljubljani ) has exclusive subject-matter juris - diction over proceedings for the recognition and dec - laration of enforceability of arbitral awards, as well as over court assistance and supervisory proceedings provided for under the Act.
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