The Arbitration Tribunal at the International Centre for Settlement of Investment Disputes (ICSID) in Washington “factually completely rejected the claim of Georg Gavrilović and the Republic of Croatia succeeded in this arbitration with over 98 percent”, reported today the State Attorney’s Office (DORH), adding that the company was awarded only 1.49 percent of the claimed amount and about 30 percent of the claimed procedural costs.
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DORH reminds that the Arbitration Tribunal at ICSID published the ruling on Friday in the proceedings initiated in 2012 by the claimant Georg Gavrilović and the second claimant Gavrilović d.o.o. for violation of the Bilateral Agreement on the Promotion and Protection of Foreign Investments concluded between Croatia and Austria and for damages in the amount of 198.5 million euros and procedural costs totaling nine million euros.
9.7 million kuna and 1.7 million euros
“The Arbitration Tribunal determined by the ruling that the Republic of Croatia violated Article 4, paragraph 1 of the Bilateral Agreement on the Promotion and Protection of Foreign Investments concluded and based on that decided that the Republic of Croatia is obliged to pay only the second claimant Gavrilović d.o.o. the amount of 9,699,462 kuna and 1,658,960 euros (1.49% of the claimed amount), and for the costs of the arbitration proceedings 2,593,642 euros and 285,288 US dollars, which amounts to 30 percent of the claimed procedural costs of the claimants,” announced DORH.
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They state that by this decision “the Arbitration Tribunal factually completely rejected the claim of Georg Gavrilović and the Republic of Croatia succeeded in this arbitration with over 98 percent, considering that the claimants requested a total of 198,500,000 euros for damages and 9 million euros for procedural costs”.
Part of the decision contrary to European Union law
“Although the decision on further legal actions regarding the part of the decision in favor of Gavrilović d.o.o. will be made after the State Attorney’s Office of the Republic of Croatia conducts an analysis of that decision, it is already evident at this moment that it is in that part contrary to European Union law,” stated DORH.
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The company Gavrilović previously stated that the Arbitration Tribunal in the proceedings initiated by Gjuro Gavrilović and his company against Croatia, issued a ruling which “unanimously determined that the Republic of Croatia unlawfully expropriated the property of the Gavrilović company”.
Irregularities in bankruptcy – at the expense of the state
“The Arbitration Tribunal determined that the investment of Gjuro Gavrilović, which consisted of the purchase of five companies from the former Gavrilović holding during bankruptcy, enjoys protection under the Washington Convention and the investment protection agreement concluded between the Republic of Croatia and the Republic of Austria,” states the company’s announcement and that of Gjuro Gavrilović himself.
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They also stated that “the investment was made in accordance with applicable laws, and the irregularities in bankruptcy that the Republic of Croatia raised during the proceedings can only be attributed to the state and its competent authorities, but not to Gjuro Gavrilović”. In the announcement, they asserted that they perceive the ruling “primarily as confirmation of their efforts to prove the unlawfulness of the actions of the Republic of Croatia and its bodies and the legitimacy of the investment made.”
