ICSID closes claim against Romania in Nitramonia Fagaras privatization file

The International Centre for Settlement of Investment Disputes (ICSID) in Washington has decided to close the claim opened by S&T Oil Equipment and Machinery against Romania, Tuca, Zbarcea & Asociatii has announced. The decision was due to the fact that S&T Oil Equipment and Machinery had not paid the required arbitration expenses, so the court has closed the case. Both parties had to pay USD 300,000 as a down payment for arbitration costs. S&T Oil Equipment and Machinery filed a complaint against Romania in 2007 on an alleged abusive expropriation, which, according to the company has led to the cancellation of the investments it was supposed to make in Nitramonia Fagaras ammonium nitrate complex. S&T Oil Equipment and Machinery was asking for USD 150 million in damages from the Romanian state. “Romania got, for a third time, a favorable ruling from the ICSID court in Washington. Even if the court closed the procedures on lack of payment, it is still a Romanian victory,” said Florentin Tuca, managing partner with Tuca Zbarcea & Asociatii, and one of the counselors of the Romanian state in this claim.