MOL makes progress in legal dispute with INA
The International Centre for Settlement of Investment Disputes (ICSID), in Washington, DC, made a preliminary ruling in favor of Hungarian oil company MOL, dismissing the objections of the Croatian government against the validity of the arbitration procedure the company initiated, Croatian daily Jutarnji List said on Monday.
Although MOL scored a small victory, the Croatian side is also happy, the paper said. Sources close to the Croatian government say they just wanted to buy more time to better prepare for the arbitration procedure, which initially caught them by surprise. The procedure was suspended for the time of the deliberation.
MOL alleges that the Croatian government breached some of its obligations and undertakings in relation to MOL's investments in Croatia, as it failed to take over Croatian oil and gas company INA's loss-making gas business, as stipulated in a shareholders' agreement.
The ICSID rejected the objections of the Croatian government against the procedure, but the decision is not final, these and other issues can be raised again at another time, Jutarnji List said.
MOL owns 49.08% of its Croatian peer INA, complete with management rights. The state of Croatia holds 44.84% of the company.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.