UFG WINS LITIGATION AGAINST EGYPT AT THE ICSID
Madrid, September 3rd, 2018
UFG has received a favorable arbitral award by the International Center for Settlement of International Disputes (ICSID) which forms part of the World Bank. It has decided on the claim initiated in 2014 and has ruled against the Arab Republic of Egypt for the unilateral interruption of gas supply to UFG’s liquefaction facilities in Damietta.
ICSID has upheld the arguments of the claim filed by UFG in the case ARB/14/4 and has considered Egypt responsible for the breach of the bilateral investment protection treaty between Spain and Egypt since the company was not granted the fair and equitable treatment required.
The arbitral tribunal has stated that Egypt must compensate UFG for the damages caused with USD 2,013 million, plus the interest and the associated arbitration and legal costs.
Second favorable award
This is the second analogous resolution favorable to UFG's claims after the one issued by the Cairo Regional Center for Commercial Arbitration (CRCICA) in case 896/2013 in December 2017.
UFG expresses its great satisfaction with the outcome of the award since it reinforces its confidence in the final resolution of this long dispute and allows the company to reaffirm its commitment to Egypt and its willingness to continue its operations in the country generating wealth, welfare and social development.
The aim of UFG has always been to reach an agreement with the Egyptian Government based on the payment of compensation for the damages caused, the restoration of supply and the offer of guarantees of contractual compliance in the future.