Croatia wins international arbitration dispute against MOL

The Republic of Croatia has won one of its international legal disputes against Hungarian oil and gas company MOL, the State Attorney’s Office (DORH) announced.

The case stems from a claim originally filed by MOL in International Center for Settlement of Investment Disputes (ICSID) investment arbitration proceedings, which resulted in an arbitral award issued in July 2022.

Under that ruling, MOL was instructed to pursue its claim through commercial arbitration over the alleged breach of the Gas Business Agreement and the First Amendment to the Gas Business Agreement, seeking compensation for damages.

MOL subsequently launched commercial arbitration proceedings against Croatia in 2023, according to DORH.

During the proceedings, MOL argued that Croatia had violated the agreements and sought damages exceeding €36 million. Alternatively, the company requested compensation for INA amounting to more than €91 million.

The arbitration tribunal rejected MOL’s claims in their entirety, DORH said.

Economy Minister Ante Šušnjar also commented on the ruling in a post on X, congratulating DORH “on a well-managed process and the protection of Croatian interests.”

“It is time for INA’s co-owners to focus on what is truly important — the development of the company, new investments and production growth. Croatia needs an INA that produces, invests and strengthens its role in the region’s energy security,” Šušnjar wrote.

He added that this includes strengthening domestic production, investing in new fields and projects, and potentially returning to Syria “when business and security conditions allow.”

Šušnjar also said the ruling presents an opportunity for INA’s co-owners to “sit down at the table and resolve the remaining open issues through agreement.”