Croatia to pay dollar millions in compensation to Hungary

The state of Croatia will pay Hungarian oil and gas company MOL 235 million US dollars rendered in an arbitration case at the International Centre for Settlement of Investment Disputes (ICSID), Minister for Economy and Sustainable Development Davor Filipović said on Croatian public television late Wednesday.

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MOL had filed a request for arbitration against the government of Croatia in 2013 for breach of contract related to agreements concerning the country’s energy company INA signed in 2009. MOL has a 49 percent stake in INA but holds management rights in the company. The state of Croatia owns close to 45 percent of INA.

Filipović said the government has already earmarked the award in the budget. Croatia surrendered jurisdiction over the agreement between MOL and the government of Croatia in 2003, allowing only international arbitration courts to decide on the matter, he said.

Source: MTI