Croatia Paying MOL USD 235 mln Award

Energy Trade

The state of Croatia will pay Hungarian oil and gas company MOL a USD 235 million award rendered in an arbitration case at the International Center for Settlement of Investment Disputes (ICSID), the country's Minister for Economy and Sustainable Development Davor Filipovic said on Croatian public television.

MOL had filed a request for arbitration against the government of Croatia in 2013 for breach of contract related to agreements concerning Croatian energy company INA signed in 2009. MOL has a 49% stake in INA but holds management rights in the company.

The state of Croatia owns close to 45% of INA.

Filipovic said a final decision was made by the advisory council on INA on Wednesday after a discussion of reports by Croatian legal experts prepared at the government's request. The government has already earmarked the award in the budget, he added.

The reports point to Croatia's surrender of jurisdiction, in 2003, over the agreement between MOL and the government of Croatia, allowing only international arbitration courts to decide on the matter, he said.

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