Serbia is ordered to pay $40 million to the Greek company, Mytilineos in compensation relating to the Smelting and Mining Basin Bor (RTB Bor) – a Geneva court has ruled.
The arbitration was launched back in 2012, and the court has now ruled that Serbia has breached its obligations towards the Greek company. Mytilineos wanted the compensation to be in the region of $65 million which is how much RTB Bor had allegedly owed to the Greek company.
The tribunal ruled that Serbia indirectly expropriated Mytilineos’s investment without compensation and frustrated its legitimate and reasonable expectations as an investor to be afforded fair and equitable treatment by the Serbian state, it said.
Under a 1996 trading deal, RTB Bor, controlled by the Serbian state, made payments to Mytilineos in cash and metal but started to miss payments in 2004, while the Serbian government also prohibited the payments without its prior approval, Mytilineos said in a statement. Mytilineos has had to write off millions of euros for RTB Bor’s payment arrears, the statement said. The ruling was issued last week, a spokesman for Mytilineos said.
On top of that, Mytilineos had delivered copper concentrate to the RTB Bor which was supposed to be additionally processed and then returned to Greece. However, all 4,000 tons of the copper concentrate were used by RTB Bor in exchange for the money that was later spent on the salaries for its workers.
Mytilineos said that the arbitral award resolves one of its last major open issues in the best way, further enhancing the significant liquidity attained through the successful issuance of a 300-million-euro bond last June and the positive monthly cash-flows of the activities of the now-unified company (metallurgy, specialized energy construction, power, and natural gas). It thus permits further important development of the company?s activities and fundamentals.
Mytilineos S.A. is a leading Greek company operating in metallurgy, power & gas and EPC & infrastructure. Established in Greece in 1990, the Company is listed on the Athens Exchange, has a consolidated turnover in excess of 1.3 billion euros and employs directly or indirectly more than 2,700 people in Greece and abroad.
(Blic, Reuters, 29.08.2017)
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