ICSID decides in favour of MOL in Croatia arbitration case

The International Centre for Settlement of Investment Disputes (ICSID) has decided in favour of Hungarian oil and gas company MOL in an arbitration case involving the state of Croatia over breach of contract.

MOL notified the market of the verdict, delivered on Tuesday, in an announcement posted on the website of the Budapest Stock Exchange on Wednesday. MOL noted that it had filed a request for arbitration against Croatia in 2013 for breach of contract related to agreements concerning Croatian energy company INA signed in 2009.

MOL owns a little over 49 percent of INA and has management rights in the company. The state of Croatia is the other big owner in INA. “The ICSID award clearly states that Croatia’s bribery related allegations are unfounded,” MOL said. “The three-member council unanimously rejected Croatia’s objection that the 2009 agreements are a result of criminal conduct,” it added.