A court rejected Venezuela’s appeal over the expropriations made against the company ConocoPhillips during the Hugo Chávez government. As a result, the Caribbean country will now have to pay a fine of 8.7 billion dollars.
What the court says
According to Bloomberg, the International Centre for Settlement of Investment Disputes (ICSID), which is part of the World Bank, confirmed a ruling made in 2019 in favor of the U.S. oil company. The company is seeking compensation for the confiscation of its assets, which lasted for more than ten years.
A ruling that closes all legal options for Venezuela
The court’s ruling means that Venezuela has no more legal options to avoid paying the debt to ConocoPhillips.
In the initial decision, the court referred to the expropriations as “illegal confiscations” and ordered Venezuela to compensate the company.
ConocoPhillips expresses satisfaction
ConocoPhillips stated in an email that it is satisfied with the decision announced on January 22. The company emphasized that the ruling confirms the principle that **governments cannot illegally expropriate private investments without paying a fair compensation**.
Venezuela’s stance
Venezuela had requested a review of the 2019 ruling, arguing that the fine amount was “excessive”.
The expropriation of ConocoPhillips’ assets took place between 2007 and 2009 during Chávez’s presidency, so current president Nicolás Maduro inherited this legal battle.
A key moment for Venezuela and the U.S.
This ruling comes at a key moment, as a federal judge in the U.S. is leading a process regarding the parent company of Citgo, with the proceeds intended to compensate ConocoPhillips and other companies affected by Chávez’s expropriations.
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