Croatia has achieved a full legal victory in an arbitration dispute with the Hungarian energy company MOL. A tribunal ruling dismissed all of MOL’s claims and ordered the company to pay arbitration-related costs. The tribunal rejected MOL’s request for compensation in its entirety.
The tribunal instructed MOL to reimburse Croatia for tribunal and administrative expenses totaling €775,000, including applicable interest. The ruling closes the commercial arbitration process between the parties.
ICSID decision directs claims toward commercial arbitration
The dispute began with earlier proceedings initiated by MOL under an ICSID investment arbitration framework. In July 2022, a decision directed MOL to pursue its compensation claims through commercial arbitration rather than the investment treaty mechanism.
After that July 2022 decision, MOL brought commercial arbitration proceedings against Croatia in 2023. The company alleged breaches of obligations under the Gas Business Agreement and its subsequent amendment.
MOL’s damages claims under Gas Business Agreement
In its commercial arbitration claim, MOL sought damages of €36.15 million. The company also presented an alternative claim seeking €91.12 million on behalf of INA.
Following review of the case, the arbitration panel ruled entirely in favor of Croatia. All claims submitted by MOL were dismissed by the tribunal. The decision confirms Croatia’s position in the arbitration proceedings.
