Venezuela, condemned to pay 1,480 million for expropriating Spanish companies

The International Center for Settlement of Investment Disputes of the World Bank (ICSID) has condemned Venezuela to pay more than 1,640 million dollars (1,481 million euros) for the expropriations that the Hugo Chávez regime carried out in 2010 on the investments of several Spanish companies in different Venezuelan companies.

According to the institution, the actions of the Chavista regime constituted a “violation” of the agreement for the Reciprocal Promotion and Protection of Investments between Spain and Venezuela.

The investments expropriated by the Latin American country were those made in the Venezuelan Agroisleña societiesInternational Insecticides, Proyefa and Venezolana de Riego.

The amount to be paid is 1,629 million dollars (1,481 million euros)

The plaintiff companies, included as Ibero-American Agro-inputs Group, are Ibero-American Agroinsumos, Inica Latinoamericana, Proyefa Internacional and Verica Atlántica. These began the award against Venezuela in 2016.

Six years later, the arbitration court has decided to rule in favor of the Spanish company, condemning the Latin American country to pay the sum of 1,629 million dollars (1,481 million euros) as compensation for its breach of the agreement between Spain and Venezuela.

ICSID has ordered Venezuela to pay more than 1.1 million (one million euros) per procedure

To this amount is added the interest on the compensation granted at the Libor rate applicable to deposits to six months denominated in US dollars plus four percentage points, capitalized annually from October 4, 2010 to the date on which Venezuela has paid in full.

Additionally, the ICSID has ordered Venezuela to pay more than 1.1 million (one million euros) for the costs of the procedure and other 16.3 million (14.8 million euros) for expenses incurred by Grupo Agroinsumos Ibero-Americanos in defense of its rights.