U.S. company Noble Ventures has raised the amount requested as damages from the Romanian State in the lawsuit it filed in Washington, after having been ousted from Resita Steel Mill (CSR).
The Americans are now asking for "not less than 353 million dollars" in damages, as compared to their initial demand of $200 million. Noble Ventures filed a lawsuit with the World Bank's International Centre for Settlement of Investment Disputes (ICSID) in October 2001, arguing they had been expropriated from the Resita Steel Mill.
Last week, the law firm retained by the Americans for this lawsuit submitted to ICSID the documents for the Noble Ventures case. The American company claims the $353m through an evaluation report drafted by a North-American firm.
The documents arrived to Bucharest on Monday, at the Privatisation Authority (APAPS). The papers will be analysed by APAPS and the law firms defending the Romanian State - US-based White & Case and Romanian-based Musat si Asociatii (Musat and Partners).
"The documentation has reached APAPS today (yesterday, i.e.), but we have not studied all the papers so it is too soon to talk about it. For the time being, APAPS maintains the same strategy," Claudiu Stefan Seucan, an APAPS state secretary for legal matters told Ziarul Financiar.
The attorneys from Musat si Asociatii would not comment on this case.
The Americans are asking for very big damages, whereas Romania has never been involved in an ICSID lawsuit. The ICSID rulings are final and cannot be disputed. "We would not have started this fight if we did not think we had the necessary resources to support this lawsuit," John Michael McNutt, chairman of the CSR Board told Ziarul Financiar last year.
The case is being judged by three arbiters. One was appointed by the Americans - an Englishman, the Romanians chose a French national, while the third arbiter (who also chairs the panel) is a German.
The Romanian side must answer to the allegations formulated by Noble Ventures. However, by yearend, the Romanian side could also ask for damages from the Americans. "We are still mulling the option of filing a reconventional demand with ICSID. This can be done, although this arbitrage court has seldom encountered with this practice - usually, the investors are suing the state, and not the other way around," Seucan stated.
Hailed as the largest US investment in Romania by the former American ambassador to Bucharest James Rosapepe, the sale of the Resita steel mill to Noble Ventures ended in complete failure, as it was affected by union protests and accusations.
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