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MOL files for ICSID arbitration on INA dispute

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Energy group MOL announced that it filed a request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID) in order to commence arbitration proceedings against the government of Croatia for breaching certain of its obligations and undertakings in relation to MOL investments in the country.

 The request was filed against the government of Croatia through international law firm Weil, Gotshal & Manges LLP, in order to commence arbitration proceedings under the Energy Charter Treaty in connection with MOL’s investments in Croatia.

MOL is the controlling owner of Croatian energy group INA, which recent accusations claim the firm acquired through bribes. As a result, there is an international arrest warrant in effect against MOL boss Zsolt Hernádi.

“MOL has certain legal obligations vis-á-vis its shareholders and stakeholders to pursue good faith negotiations. However, it is also under legal obligations to commence legal action to enforce its rights,” a company statement read in part.

MOL’s biggest owner, the Hungarian state has asked the firm’s management to make preparations for selling the INA stake as a response.

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